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Required information The following information applies to the questions displayod below] Peng Company is considering an investment expected to generate an average net income after
Required information The following information applies to the questions displayod below] Peng Company is considering an investment expected to generate an average net income after taxes of $2,500 for three years. The investment costs $56,400 and has an estimated $10,800 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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