Baird 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 $97,500. The expected life and salvage value of each is six years and $20,900, respectively. Baird has an average cost of capital of 12 percent. (PV of $1andPVA of $1)(Use appropriate factor(s) from the tables provided.)

Required

1. Calculate the netpresent 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.)
2. 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.

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