Jordan 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 $96,000. The expected life and salvage value of each are five years and $20,500, respectively. Jordan has an average cost of capital of 16 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

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.)

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.

Hint**** 16 percent & 5 years

PV of $1.00 = 0.476113

Present Value of an annuity of $1.00 = 3.274294

a.	Net present value	??????
b.	Will the return be above or below the cost of capital?	Above
	Should the investment opportunity be accepted?	Accepted