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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 $3,400 for three years. The investment costs $48,300 and has an estimated $6,000 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straightline 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 - Present Value Cash Flow Annual cash flow Residual value Net present value S to STOW 1111

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