Exercise 16-5A (Algo) Determining net present value LO 16-2 Fanning Company is considering investing in two new vans that are expected to generate combined cash inflows of $34,500 per year. The vans combined purchase price is $96.000. The expected life and salvage value of each are four years and $21,800, respectively. Fanning has an average cost of capital of 10 percent (PV of S1 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 your intermediate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. aNet present value b ww the return be above or below the cost of capital? Should the investment opportunity be accepted? Activate Windows