13 Exercise 16-5 Determining net present value LO 16-2 6 points Perez Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,000 per year. The vans' combined purchase price is $100,000. The expected life and salvage value of each are five years and $20,900, respectively. Perez has an average cost of capital of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. Answer is complete but not entirely correct. a. $ 5,583.57 b. Net present value Will the return be above or below the cost of capital? Should the investment opportunity be accepted? Above Accepted