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Required information The following information applies to the questions displayed below Peng Company is considering an investment expected to generate an average net income after
Required information The following information applies to the questions displayed below Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $48,600 and has an estimated $9,300 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Cash Floww Annual cash flow Residual value Select Chart AmountxPV Factor Present Value Net present value
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