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 $2,300 for three years. The investment costs $51,600 and has an estimated $9,000 salvage value. QS 11-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation Accounting Rate of Return Choose Numerator Accounting Rate of Return Choose Denominator: Annual after-tax net income Annual average investment Accounting rate of return 0 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 $2,300 for three years. The investment costs $51,600 and has an estimated $9,000 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. EV 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.) Cash Flow Select Chart Amount x PV Factor -Present Value Annual cash flow Present Value of an Annuity of 1 0 Residual value Present Value of 1 $ 9.000 x 0 Present value of cash inflows Immediate cash outflows 51,600 Net present value