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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 $3,400 for three years. The investment costs $56,100 and has an estimated $11,700 salvage value. QS 24-8 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 $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Select Chart Amount * PV Factor Cash Flow Annual cash flow Residual value Present Value $ 0 0 Net present value

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