Benson Company is considering investing in two new vans that are expected to generate combined cas per year. The vans' combined purchase price is $98,000. The expected life and salvage value of each ar $20,100, respectively. Benson has an average cost of capital of 10 percent. (PV of $1 and PVA of $1) (Use from the tables provided.) Required a. Calculate the net present value of the investment opportunity. (Negative amount should be indicated Round your intermediate 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 cc whether it should be accepted. a. Net present value Ih Will the return he above or below the cost of capital? ANNUITY OF $1 6 % 7% 8 % 9% 10% 12% 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 1.833393 1.808018 1.783265 1.759111 1.735537 1.690051 1.646661 2.673012 2.624316 2.577097 2.531295 2.486852 2.401831 2.321632 3.465106 3.387211 3.312127 3.239720 3.169865 3.037349 2.913712 4.212364 4.100197 3.992710 3.889651 3.790787 3.604776 3.433081 4.917324 4.766540 4.622880 4.485919 4.355261 4.111407 3.888668 5.582381 5.389289 5.206370 5.032953 4.868419 4.563757 4.288305 6.209794 5.971299 5.746639 5.534819 5.334926 4.967640 4.638864 6.801692 6.515232 6.246888 5.995247 5.759024 5.328250 4.946372 7.360087 7.023582 6.710081 6.417658 6.144567 5.650223 5.216116 7.886875 7.498674 7.138964 6.805191 6.495061 5.937699 5.452733 8.383844 7 .942686 7.536078 7.160725 6.813692 6.194374 5.660292 8.852683 651 7.903776 7.486904 7.103356 6.423548 5.842362 9.294984 8.745468 8.244237 7.786150 7.366687 6.628168 6.002072 9.712249 9.107914 8.559479 8.060688 7.606080 6.810864 6.142168 10.105895 9.4466498.851369 8.312558 7.823709 6.973986 6.265060 0.477260 9.7632239.121638 8.543631 8.021553 7.1196306.372859 10.827603 10.059087 9.371887 8.755625 8.201412 7.249670 6.467420 11.158116 10.335595 9.603599 8.905115 8.364920 7.365777 6.550369 11.469921 10.594014 9.818147 9.128546 8.513564 7.469444 6.623131 NT VALUE OF $1 5% 6 % 7% 8% 9% 10% 12% 14% 16 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743 .863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640 2.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552 .783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.47 .746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353 .676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305 .644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262 5.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.22 5.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.19 3.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.16 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145 5.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125 5.481017 0.417265 0.362446 0.315242 0.27453 0.239392 0.182696 0.140096 0.107 5.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.09 3.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.08 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069 7.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.05% 376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.0F Benson Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,000 per year. The vans' combined purchase price is $98,000. The expected life and salvage value of each are six years and $20,100, respectively. Benson has an average cost of capital of 10 percent. (PV of $1 and PVA of $1) (Use appropriate 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 intermediate 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. a. Net present value b. Will the return be above or below the cost of capital? Should the investment opportunity be accepted