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Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $55,200 and

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Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $55,200 and has an estimated $10.500 salvage value. QS 24-8 Net present value LO P3 Assume Peng requires a 15% 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 S1, and FVA of S1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Amount PV Factor Present Value Cash Flow Annual cash flow Residual value Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value

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