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Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $29,000 per year. The vans combined purchase

Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $29,000 per year. The vans combined purchase price is $95,500. The expected life and salvage value of each are six years and $21,600, respectively. Callaghan has an average cost of capital of 14 percent. Calculate the net present value of the investment opportunity.

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