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 $3,500 for three years. The investment costs $59,700 and has an estimated $10,200 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. Answer is complete but not entirely correct. Accounting Rate of Return Choose Denominator: Accounting Rate of Return Annual average investment Accounting rate of retum 10.200 34.31 Choose Numerator Annual attenta net income 3,500 1 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 $3,500 for three years. The investment costs $59,700 and has an estimated $10,200 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.) PV Factor Present Value Cash Flow Annual cash flow Residual value Amount $ 15,500 $ 12,000 x 0 0 Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash flows Net present value Net present value 59.700