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Exercise Jordan Company is considering investing in two new vans that are expected to generate combined cash inflows of $32,500 per year, The vans' combined

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Exercise Jordan Company is considering investing in two new vans that are expected to generate combined cash inflows of $32,500 per year, The vans' combined purchase price is $90,500. The expected life and salvage value of each are six years and $20,600, respectively Jordan has an average cost of capital of 10 percent. (PV of $1 and PVA of S1) (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 Above a Net present value b. Will the return be above or below the cost of capital? Should the investment opportunity be accepted? Accepted

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