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Adams Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,500 per year The vans' combined purchase

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Adams Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,500 per year The vans' combined purchase price is $100000. The expected ife and salvage value of each are four years and $20100, respectively Adams has an average cost of capital of 16 percent. (PV of S1 and PVA of S0 (Use appropriate factorts) from the tables provided.) Required a. Calculate the net present value of the investment opportunity. (Negetive amount should be indicoted by a intermediate calculations and final answer to 2 decimal places.) expected to earn a returm that is above or below the cost of captal and whether it b. Indicate whether the investment opportunity is 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

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