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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

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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 price is $95,000. The expected life and salvage value of each are six years and $21,500, respectively Fanning has an average cost of capital of 14 percent (PV of $1 and PVA of $1) (Use appropriate foctor(s) from the tables provided.) Required o. Calculate the net present value of the investment opportunity. (Negotive 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 a Net present value b Will the return be above or below the cost of capital? Should the investment opportunity be accepted

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