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 $2,900 for three years. The investment costs $56,400 and has an estimated $8,700 salvage value QS 11-8 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 EVA 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.) Amount PV Factor Cash Flow Annual cash flow Residual value Present Value $ 0 0 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value Exercise 11-10 NPV and profitability Index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project Project Initial investment $(184,325) $(159,960) Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 36,000 56,000 76,295 81,400 60,000 44,000 44,000 50,000 66,000 29,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Project A