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Fanning Company is considering investing in two new vans that are expected to generate combined cash inflows of $32,000 per year: The vans' combined purchase
Fanning Company is considering investing in two new vans that are expected to generate combined cash inflows of $32,000 per year: The vans' combined purchase price is $100,000. The expected life and salvage value of each are 51x years and $20.600, respectively. Fanning has an average cost of capital of 14 percent. (PV of \$1 and PVA of \$1) Note: Use oppropriate factor(s) from the tables provided. Required o. Calculate the net present value of the investment opportunity. Note: Negative amount should be indicated by a minus sign. Round your intermediate calculotions and final answer to 2 decimal places. b. Indicate whether the investment opportunity is expected to eam a retuin that is above or below the cost of capital and whether it should be accepted
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