Callaghan 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 $99,000. The expected life and salvage value of each are six years and $20,300, respectively. Callaghan has an average cost of capital of 14 percent. (PV of $1 and PVA of $1)

Calculate the net present value of the investment opportunity.

Based on your answer in Requirement a, should the investment opportunity be accepted.