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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 $2,300 for three years. The investment costs $58,200 and has an estimated $6,900 salvage value. QS 25-8 Net present value LO P3 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 S1, and FVA of $1] (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Canh Flow Select Chart Annual cash flow Present Value of an Annuity of 1 Residual value Present Value of 1 Amount * PV Factor - Present Value $19.400 x $ 0 0 Net present value

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