Question: Please answer both fully ! Saved Help Save 0 Required information The following information applies to the questions displayed below. Peng Company is considering an

Please answer both fully !  Please answer both fully ! Saved Help Save 0 Required information
The following information applies to the questions displayed below. Peng Company is

Saved Help Save 0 Required information 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 $48,900 and has an estimated $7,500 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation Accounting Rate of Return Choose Denominator: nting Rate of Re Choose Numeraton:l Accounting rate of return Annual after-tax net income Annual average investment 2,900$ 1028% 28,200 Saved Help Save Required information [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 $48,900 and has an estimated $7,500 salvege velue. 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 EVA of $1) (Use appropriate factorfs) from the tables provided. Negative amounts should be Indicated by a minus sign.) Cash Flow Annual cash flow Residual value Select Chart Value of an Annuity of 1 2.4869S Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value 48,900

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