Aaron Heath is seeking part-time employment whle he attends school. He Is considering purchasing technical equipment that will enable him to start a small tralning services company that will offer tutorlal services over the Internet. Aaron expects demand for the service to grow rapldly In the first two years of operation as customers learn about the avallabllity of the Internet assistance. Thereafter, he expects demand to stabillize. The following table presents the expected cash flows: Year of Operation 2819 2828 2821 2822 Cash Inflow Cash Outflow $12,888 28,188 21,288 21,288 $ 8,808 11,888 12,800 12,800 In addition to these cash flows, Aaron expects to pay $21,500 for the equlpment. He also expects to pay $3,600 for a major overhaul and updating of the equipment at the end of the second year of operation. The equipment is expected to have a $1,300 salvage value and a four year useful life. Aaron desires to earn a rate of return of 9 percent. (PV of $1 and PVA of $1 (Use approprlate factor(s) from the tables provlded.) Requlred a. Calculate the net present value of the Investment opportunity. (Negatlve amount should be Indicated by a minus sign. Round Intermedlate calculatlons 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 deslred 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 be accepted