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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

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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 taxes of $2,800 for three years. The investment costs $59,700 and has an estimated $11,100 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. 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 $2,800 for three years. The investment costs $59,700 and has an estimated $11,100 salvage value. Assume Peng requires a 5% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of \$1. EV of \$1. PVA of \$1, and EVA of \$1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.)

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