Munoz Company is considering investing in two new vans that are expected to generate combined cash inflows of $$28,000$ per year.

The vans' combined purchase price is $$94,000.$ The expected life and salvage value of each are seven years and $$20,200,$

respectively. Munoz 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

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 accepted.