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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 $2,900 for three years. The investment costs $45.900 and has an estimated $6,900 salvage value. Compute the accounting rate of return for this investment, assume the company uses straight line depreciation. Choose Numerator: Annual after-tax net income 2.900 Accounting Rate of Return Choose Denominator: Annual average investment Accounting Rate of Return Accounting rate of return - 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 $2,900 for three years. The investment costs $45,900 and has an estimated $6.900 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 S1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Select Chart Amount x PV Factor - Present Value Cash Flow Annual cash flow Residual value Net present value

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