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Compute the net present value of the investment

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Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $53,700 and has an estimated $7,800 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 factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

Reference no: EM132780008

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