Net present value
Cash flow | Select Chart | Amount | * | PV factor | = | Present value |
Annual cash flow | Present value of annual cash inflow | 18300 | 2.7233 | 49836.39 | ||
Residual value | Present value of residual value | 8100 | 0.8638 | 6996.78 | ||
Total present value of cash inflow | 56833.17 | |||||
Initial investment | = | -54900 | ||||
Net present value | 1933 | |||||
Required information [The following information applies to the questions displayed below.] Peng Company is considering an...
Required information [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 $3,100 for three years. The investment costs $51,900 and has an estimated $10,800 salvage value. 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...
Required information 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 $2.200 for three years. The investment costs $59,100 and has an estimated $6,900 salvage value. 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...
Required information [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 $2,600 for three years. The Investment costs $57,000 and has an estimated $9,900 salvage value. Assume Peng requires a 10% return on ts Investments. Compute the net present value of this Investment. Assume the company uses stralght-line depreclation. (PV of $1. FV of $1, PVA of $1 and FVA of $1) (Use appropriate...
Required information [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 $3,400 for three years. The investment costs $57,000 and has an estimated $10,200 salvage value. Assume Peng requires a 15% 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...
Required Information 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 $1,950 for three years. The investment costs $45,000 and has an estimated $6.000 salvage value. Assume Peng requires a 15% 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 S1, and FVA of $1) (Use appropriate...
Required information (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 $2,100 for three years. The investment costs $48,000 and has an estimated $10,200 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation Choose Numerator: Accounting Rate of Return Choose Denominator: - Accounting Rate of Return Accounting rate of return Required information [The following information applies...
Required information (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 $3,400 for three years. The investment costs $57,600 and has an estimated $6,000 salvage value. 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...
! Required information [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $47,947 today. The machine will generate annual cash flows of $21,000 for the next three years. Assume the company uses an 8% discount rate. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart...
Required information [The following information applies to the questions displayed below) A company is investing in a solar panel system to reduce its electricity costs. The system requires a ay. The system is expected to generate net cash flows of $10,615 per year for the next 35 years. The investment has zero salvage value. The company requires an 7% return on its investments. 1-a. Compute the net present value of this investment (PV of $1. FV of $1, PVA of...
Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below) Part 2 of 2 Peng Company is considering an investment expected to generate an average net income after taxes of $2,100 for three years. The investment costs $49,800 and has an estimated $11,400 salvage value. points QS 24-8 Net present value LO P3 Assume Peng requires a 10% return on its investments. Compute the net present value of this investment....