Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $28,500 per year. The vans combined purchase price is $92,000. The expected life and salvage value of each are seven years and $21,200, respectively. Callaghan has an average cost of capital of 14 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to 2 decimal places.) a. Net present value b-1. Indicate whether the investment opportunity is expected to earn a retun that is above or below the cost of capital. Above Below b-2. Based on your answer in Requirement b-1, should the investment opportunity be accepted. Accepted Rejected