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im so lost, an expert already answered exactly the same answer I got but it says its wrong??? help???? please?? Perez Company is considering investing
im so lost, an expert already answered exactly the same answer I got but it says its wrong??? help???? please??
Perez Company is considering investing in two new vans that are expected to generate combined cash inflows of $30,500 per year. The vans' combined purchase price is $97,500. The expected life and salvage value of each are seven years and $21,800, respectively. Perez 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 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 acceptedStep by Step Solution
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