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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

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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 $3,100 for three years. The investment costs $59,700 and has an estimated $6,900 salvage value assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company use straight-line depreciation (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate foctor(s) from the tables provided. Negat amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Answer is not complete. PV Factor Cash Flow Annual cash flow Residual value Select Chart Present Value of an Annuity of 1 0.8696 Amount 20,700 X 27.600 x Present Value s 18,001 0 $ X Immediate cash outflows Present value of cash inflows Net present value 24,101 1,555 5 Next

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