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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 $2,300 for three years. The investment costs $49,200 and has an estimated $7,500 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. 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. Round your present value factor to 4 decimals.) Answer is not complete. Cash Flow Present Value PV Factor 2.7232= Amount x 2,300 X X 2,300 X X s Annual cash flow Residual value 6,263 $ $ 0.8638 1.987 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value SO s 8,250

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