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 $3,300 for three years. The investment costs $59,700 and has an estimated $6,300 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. A ssume the company uses straight-line depreciation. (PV of$1, FV of $1, PVAf $1, and FVAf $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Cash Flow Annual cash flow Residual value Amount x PV FactorPresent Value Select Chart Present Value of an Annuity of 1 Present Value of 1 2.4869$ Present value of cash inflows Immediate cash outflows Net present value If Quail Company invests $43,000 today, it can expect to receive $13,000 at the end of each year for the next seven years, plus an extra $6,700 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 12% return on investments? Chart Values are Based on Select Chart Cash Flow Annual cash floww Residual value Amount X PV FactorPresent Value Net present value Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $116,000 and is expected to generate an additional $44,000 in cash flows for 5 years. A bank will make a $116,000 loan to the company at a 10% interest rate for this equipment's purchase. Use the following table to determine the break-even time for this equipment. All cash flows occur at year-end. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: Cumulative Year Cash Inflow ear(outflow)x PV FactorPresent Value Present Value of Inflow Outflow) 0 116,000) x 1.0000(116,000) (116,000) 4 5 Beyer Company is considering the purchase of an asset for $260,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Total Year 1 Year 2 Year 3 Year 4Year5 Net cash flows $64,e00 $38,ee0 $67,ee $13e,e00 $23,e00 $322,0 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.) Cumulative Net Cash Inflow (Outflow) Year Cash inflow 0 S(260,000) 4 Payback period Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of five years. The system b. A machine costs $190,000, has a $14,000 salvage value, is expected to last nine years, and will generate an after-tax income of yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000 $43,000 per year after straight-line depreciation Payback Period Choose Numerator: I Choose Denominator: Payback Period Payback period