Exercise 16-5 Determining net present value LO 16-2 Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,500 per year. The vans combined purchase price is $99,000. The expected life and salvage value of each are eight years and $20,100, respectively. Callaghan has an average cost of capital of 12 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 intermediate calculations and final answer to 2 decimal places.)

Net Present Value________________________ Please Fill in the blank