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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 $2,900 for three years. The investment costs $52,200 and has an estimated $6,600 salvage value. 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. EV 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 x PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value

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