Monterey Company is considering investing in two new vans that are expected to generate combined cash inflows of

$93,000.$ The expected life and salvage value of each are four years and

$1$ and PVA of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required

Calculate the net present value of the investment opportunity. $($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.

a$.$ Net present value $?$

b$.$ Will the return be above or below the capital? Above

Should the investment opportuntity be accepted? Accept