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Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Peng Company is considering an
Required information Use the following information for the Quick Study below. [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 $2,500 for three years. The investment costs $52,500 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. 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.) Amount Select Chart II PV Factor = Present Value = 0 Cash Flow Annual cash flow Residual value Present Value of an Annuity of 1 Present Value of 1 = 0 Present value of cash inflows Immediate cash outflows Net present value
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