Description:

tax on the use of vehicles, gasoline, alcohol, cigarettes, highways, and the like.

tax on the wealth and property of a person upon death.

tax on purchases of both discretionary and nondiscretionary items. tax on wages, earned interest, capital gain, and the like.

tax on home and land ownership.

tax on purchases of discretionary items.

tax on items during their production as well as upon consumption.

type of tax:

property tax

consumption tax

value-added or goods and services tax

income tax

excise tax

sales tax

estate tax

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                AmountxPV 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