Aaron Heath is seeking parttime employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer tutorial services over the Internet. Aaron expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availability of the Internet assistance. Thereafter, he expects demand to stabilize. The following table presents the expected cash flows: Year of Operation Cash Inflow Cash Outflow Year\" 1 $12,366 $ 3,566 Year\" 2 19,466 11,366 Year\" 3 22,366 12,866 Year\" 4- 22,366 12,866 In addition to these cash ows, Aaron expects to pay $21,100 for the equipment. He also expects to pay $2,900 for a major overhaul and updating ofthe equipment at the end ofthe second year of operation. The equipment is expected to have a $1,900 salvage value and a fouryear useful life. Aaron desires to earn a rate of return of10 percent. {PV of $_1 and PVA of $1} {Use appropriate factor{s) from the tables provided.) Req u ired a. Calculate the net present value ofthe investment opportunity. {Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to 2 decimal places.) 1:. Indicate whether the investment opportunity is expected to earn a return that is above or below the desired rate of return and whether it should be accepted. a. Net present value b. Will the return be above or below the cost of capital? Should the investment opportunity he accepted