Exercise 10-5A (Algo) Determining net present value LO 10-2

Jordan 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 $90,500. The expected life and salvage value of each are seven years and $20,300, respectively. Jordan has an average cost of capital of 14 percent. (PV of $1 and PVA of $1)

Note: Use appropriate factor(s) from the tables provided.

Required

Calculate the net present value of the investment opportunity.

Note: Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.