Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hi i can not figure out how to get pv factor for t

Hi I can not figure out how to get PV factor for this problem ...

80.2K

Verified Solution

Question

Accounting

Hi I can not figure out how to get PV factor for this problem

Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years. The investment costs $45,900 and has an estimated $9,900 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 factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

image

Cash Flow Amount x PV Factor Present Value Annual cash flow Assessment Tool iFrame Present Value of an Annuity of 1 $15,300 x = 0 Residual value Present Value of 1 = 0 Net present value

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students