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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

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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 investment expected to generate an average net income after taxes of $3,300 for three years. The investment costs $55,800 and has an estimated $10,200 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return 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 PV Factor Cash Flow Annual cash flow Residual value Present Value $ 0 = 0 Net present value

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