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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 $2,700 for three years. The investment costs $52,500 and has an estimated $7,200 salvage value. QS 25-8 Net present value LOP3 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.) Amount PV Factor Present Value Cash Flow Select Chart Annual cash flow Residual value $ 0 11 0 Net present value Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below. Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments. Investment A1 Initial investment $(340,000) Expected net cash flows in year: 105,000 130,000 3 105,000 QS 25-11 Net present value LO P3 Compute this investment's net present value. (PV of $1. FV of $1, PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 Present Value at 9% Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 0 0 $ 0

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