Required Information Use the following information for the Quick Study below. [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 $2,800 for three years. The investment costs $48,300 and has an estimated $10,500 salvage value. QS 24-8 Net present value LO P3 Assume Peng requires a 5% 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 FVA of $1 (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.) Cash Flow Annual cash flow Residual value Amount x $ 15,400 x $ 10.500 PV Factor 2.7233 0.8639 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows immediate cash outflows Net present value Present Value $ 41.939 9,071 $ 51,010 48,300 Required Information Use the following information for the Quick Study below. [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 $2,800 for three years. The investment costs $48,300 and has an estimated $10,500 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment assume the company uses straight-line depreciation, Choose Numerator: Annual after-tax net income $ Accounting Rate of Return Choose Denominator: Annual average investment Accounting Rate of Return Accounting rate of return 0 2,800 Required Information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project A requires a $395,000 initial investment for new machinery with a five-year life and a salvage value of $48,000. The company uses straight-line depreciation. Project A is expected to yield annual net Income of $21,800 per year for the next five years. QS 24-6 Accounting rate of return LO P2 Compute Project A's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator Annual after-tax net income Annual average investment $ 21,800/ Accounting Rate of Return Accounting rate of return = Required Information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project Arequires a $395,000 initial investment for new machinery with a five-year life and a salvage value of $48,000 The company uses straight-line depreciation Project A is expected to yield annual net income of $21,800 per year for the next five years. QS 24-5 Payback period LO P1 Compute Project A's payback period. Payback Period Choose Denominator: 1 Annual net cash flow ## Choose Numerator: Cost of investment $ 395,000 Payback Period Payback period 0