Answer:
Explanation:
The question is incomplete, please refer the complete question below:
Peng Company is considering an investment expected to generatean average net income after taxes of $3,400 for three years. Theinvestment costs $50,400 and has an estimated $10,200 salvagevalue.
Assume Peng requires a 10% return on its investments. Computethe net present value of this investment. Assume the company usesstraight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVAof $1) (Use appropriate factor(s) from the tables provided.Negative amounts should be indicated by a minus sign.)
Cash Flow Amount x PV Factor = Present Value
Annual cash flow 16,800 2.48685 = 41,779.11
Residual value 10,200 0.75131 = 7,663.41
Present Value of CashInflow 49,442.52
Immediate Cash Outflow -50400
Net Present value -957.48
