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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 $3,500 for three years. The investment costs $59,400 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. Round your present value factor to 4 decimals.) Select Chart Amount x PV Factor Cash Flow Annual cash flow Residual value Present Value Net present value D Required information [The following information applies to the questions displayed below.) A company is considering investing in a new machine that requires a cash payment of $47,907 today. The machine will generate annual cash flows of $19,946 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount invested Annual Not Cash Flow - Present Value Factor Internal Rate of Return Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $280,000 and have a useful life of five years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $180,000, has a $15,000 salvage value, is expected to last nine years, and will generate an after-tax income of $44,000 per year after straight-line depreciation. Payback Period Choose Denominator: Choose Numerator: 1 7 Payback Period Payback period = b

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