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Required information (The following information applies to the questions displayed below.) Peng Company is considering an inv
Required information [The following information applies to the questions displayed below.) Peng Company is considering an inv
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Answer #1
Accounting Rate of Return
Choose Numerator: / Choose Denominator: = Accounting Rate of Return
Annual after-tax net income / Annual average investment = Accounting Rate of Return
2100 / 29100 = 7.22%
Cash Flow Select Chart Amount × PV Factor = Present Value
Annual cash flow Present value of an Annuity of 1 14700 × 2.487 = 36559
Residual value Present value of 1 10200 × 0.751 = 7660
           Present value of cash inflows 44219
           Immediate cash outflows -48000
Net present value -3781
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