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 $2,000 for three years. The investment costs $48,000 and has an estimated $9,600 salvage value. QS 25-8 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.) Cash Flow Select Chart Amount x PV Factor = Present Value Annual cash flow = Residual value Net present value Use the following information for the Quick Study below. [The following information applies to the questions displayed below. Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 6% return from its investments. Investment Al $(390,000) Initial investment Expected net cash flows in year: 170,000 146,000 87,000 QS 25-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value Present Value of 1 at 6% Year 1 Year 2 Year 3 Totals Amount invested Net present value QS 25-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $32,000. Compute the investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 6% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value