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Benson Company Is considering investing in two new vans that are expected to generate combined cash inflows of $34,000 per year, The vans' combined purchase
Benson Company Is considering investing in two new vans that are expected to generate combined cash inflows of $34,000 per year, The vans' combined purchase price is $91,500. The expected life and salvage value of each are five years and $21,400, respectively. Benson has an average cost of capital of 14 percent. (PV of $1 and PVA of $5 (Use approprlate 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 Intermedlate 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
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