Question: Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed belo w.] Peng Company is considering

 Required information Use the following information for the Quick Study below.

Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed belo w.] Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $55,800 and has an estimated $9,600 salvage value. 05 24-8 Net present value LO P3 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 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.) Annual cash flow Residual value Net present value

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