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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 $2.400 for three years. The investment costs $49,500 and has an estimated $10.200 salvage value. QS 25-8 Net present value LO P3 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 S1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Select Chart Cash Flow Annual cash flow Residual value Amount x PV Factor - Present Value $ 0 0 Net present value 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 3% return from its investments Part 1 of 2 25 Sints Tnitial investment Espected net cash flows in years Investment AL (330,000) 180,000 114,000 111,000 $ 02:00 QS 25-11 Net present value LO P3 Hint Compute this investment's net present value (Evo 51. FV of $1. PVA of S1, and EVA of 59 (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Print Cash Flow Procent Value of 1 at a Present Value Yeart Year 2 Year Total Amount invested Net present value $ 0 5 $

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