Perez company considering investing in two vans that are expected to generate combined cash inflows of $31,500 per year. The vans' combined purchase price is $99,000. The expected life and salvage value of each are eight years and $21,700 respectively. Perez has and average capital of 10%

Calculate net present values of the investment opportunity. Negative amount should be indicated by minus, round immediate calculations and final answer to 2 decimal points.

A. net present values?

B. Will the return be above or below cost of capital?

Should investment opportunity be accepted ?

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hlinen & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 16% & 20% \\ \hline 1 & 0.961538 & 0.952381 & 0.943396 & 0.934579 & 0.925926 & 0.917431 & 0.909091 & 0.892857 & 0.877193 & 0.862069 & 0.833333 \\ \hline 2 & 0.924556 & 0.907029 & 0.889996 & 0.873439 & 0.857339 & 0.841680 & 0.826446 & 0.797194 & 0.769468 & 0.743163 & 0.694444 \\ \hline 3 & 0.888996 & 0.863838 & 0.839619 & 0.816298 & 0.793832 & 0.772183 & 0.751315 & 0.711780 & 0.674972 & 0.640658 & 0.578704 \\ \hline 4 & 0.854804 & 0.822702 & 0.792094 & 0.762895 & 0.735030 & 0.708425 & 0.683013 & 0.635518 & 0.592080 & 0.552291 & 0.482253 \\ \hline 5 & 0.821927 & 0.783526 & 0.747258 & 0.712986 & 0.680583 & 0.649931 & 0.620921 & 0.567427 & 0.519369 & 0.476113 & 0.401878 \\ \hline 6 & 0.790315 & 0.746215 & 0.704961 & 0.666342 & 0.630170 & 0.596267 & 0.564474 & 0.506631 & 0.455587 & 0.410442 & 0.334898 \\ \hline 7 & 0.759918 & 0.710681 & 0.665057 & 0.622750 & 0.583490 & 0.547034 & 0.513158 & 0.452349 & 0.399637 & 0.353830 & 0.279082 \\ \hline 8 & 0.730690 & 0.676839 & 0.627412 & 0.582009 & 0.540269 & 0.501866 & 0.466507 & 0.403883 & 0.350559 & 0.305025 & 0.232568 \\ \hline 9 & 0.702587 & 0.644609 & 0.591898 & 0.543934 & 0.500249 & 0.460428 & 0.424098 & 0.360610 & 0.307508 & 0.262953 & 0.193807 \\ \hline 10 & 0.675564 & 0.613913 & 0.558395 & 0.508349 & 0.463193 & 0.422411 & 0.385543 & 0.321973 & 0.269744 & 0.226684 & 0.161506 \\ \hline 11 & 0.649581 & 0.584679 & 0.526788 & 0.475093 & 0.428883 & 0.387533 & 0.350494 & 0.287476 & 0.236617 & 0.195417 & 0.134588 \\ \hline 12 & 0.624597 & 0.556837 & 0.496969 & 0.444012 & 0.397114 & 0.355535 & 0.318631 & 0.256675 & 0.207559 & 0.168463 & 0.112157 \\ \hline 13 & 0.600574 & 0.530321 & 0.468839 & 0.414964 & 0.367698 & 0.326179 & 0.289664 & 0.229174 & 0.182069 & 0.145227 & 0.093464 \\ \hline 14 & 0.577475 & 0.505068 & 0.442301 & 0.387817 & 0.340461 & 0.299246 & 0.263331 & 0.204620 & 0.159710 & 0.125195 & 0.077887 \\ \hline 15 & 0.555265 & 0.481017 & 0.417265 & 0.362446 & 0.315242 & 0.274538 & 0.239392 & 0.182696 & 0.140096 & 0.107927 & 0.064905 \\ \hline 16 & 0.533908 & 0.458112 & 0.393646 & 0.338735 & 0.291890 & 0.251870 & 0.217629 & 0.163122 & 0.122892 & 0.093041 & 0.054088 \\ \hline 17 & 0.513373 & 0.436297 & 0.371364 & 0.316574 & 0.270269 & 0.231073 & 0.197845 & 0.145644 & 0.107800 & 0.080207 & 0.045073 \\ \hline 18 & 0.493628 & 0.415521 & 0.350344 & 0.295864 & 0.250249 & 0.211994 & 0.179859 & 0.130040 & 0.094561 & 0.069144 & 0.037561 \\ \hline 19 & 0.474642 & 0.395734 & 0.330513 & 0.276508 & 0.231712 & 0.194490 & 0.163508 & 0.116107 & 0.082948 & 0.059607 & 0.031301 \\ \hline 20 & 0.456387 & 0.376889 & 0.311805 & 0.258419 & 0.214548 & 0.178431 & 0.148644 & 0.103667 & 0.072762 & 0.051385 & 0.026084 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hlinen & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 16% & 20% \\ \hline 1 & 0.961538 & 0.952381 & 0.943396 & 0.934579 & 0.925926 & 0.917431 & 0.909091 & 0.892857 & 0.877193 & 0.862069 & 0.833333 \\ \hline 2 & 1.886095 & 1.859410 & 1.833393 & 1.808018 & 1.783265 & 1.759111 & 1.735537 & 1.690051 & 1.646661 & 1.605232 & 1.527778 \\ \hline 3 & 2.775091 & 2.723248 & 2.673012 & 2.624316 & 2.577097 & 2.531295 & 2.486852 & 2.401831 & 2.321632 & 2.245890 & 2.106481 \\ \hline 4 & 3.629895 & 3.545951 & 3.465106 & 3.387211 & 3.312127 & 3.239720 & 3.169865 & 3.037349 & 2.913712 & 2.798181 & 2.588735 \\ \hline 5 & 4.451822 & 4.329477 & 4.212364 & 4.100197 & 3.992710 & 3.889651 & 3.790787 & 3.604776 & 3.433081 & 3.274294 & 2.990612 \\ \hline 6 & 5.242137 & 5.075692 & 4.917324 & 4.766540 & 4.622880 & 4.485919 & 4.355261 & 4.111407 & 3.888668 & 3.684736 & 3.325510 \\ \hline 7 & 6.002055 & 5.786373 & 5.582381 & 5.389289 & 5.206370 & 5.032953 & 4.868419 & 4.563757 & 4.288305 & 4.038565 & 3.604592 \\ \hline 8 & 6.732745 & 6.463213 & 6.209794 & 5.971299 & 5.746639 & 5.534819 & 5.334926 & 4.967640 & 4.638864 & 4.343591 & 3.837160 \\ \hline 9 & 7.435332 & 7.107822 & 6.801692 & & & 5.995247 & 5.759024 & 5.328250 & 4.946372 & 4.606544 & 4.030967 \\ \hline 10 & 8.110896 & 7.721735 & 7.360087 & 7.023582 & 6.710081 & 6.417658 & 6.144567 & 5.650223 & 5.216116 & 4.833227 & 4.192472 \\ \hline 11 & 8.760477 & 8.306414 & 7.886875 & 7.498674 & 7.138964 & 6.805191 & 6.495061 & 5.937699 & 5.452733 & 5.028644 & 4.327060 \\ \hline 12 & 9.385074 & 8.863252 & 8.383844 & 7.942686 & 7.536078 & 7.160725 & 6.813692 & 6.194374 & 5.660292 & 5.197107 & 4.439217 \\ \hline 13 & 9.985648 & 9.393573 & 8.852683 & 8.357651 & 7.903776 & 7.486904 & 7.103356 & 6.423548 & 5.842362 & 5.342334 & 4.532681 \\ \hline 14 & 10.563123 & 9.898641 & 9.294984 & 8.745468 & 8.244237 & 7.786150 & 7.366687 & 6.628168 & 6.002072 & 5.467529 & 4.610567 \\ \hline 15 & 11.118387 & 10.379658 & 9.712249 & 9.107914 & 8.559479 & 8.060688 & 7.606080 & 6.810864 & 6.142168 & 5.575456 & 4.675473 \\ \hline 16 & 11.652296 & 10.837770 & 10.105895 & 9.446649 & 8.851369 & 8.312558 & 7.823709 & 6.973986 & 6.265060 & 5.668497 & 4.729561 \\ \hline 17 & 12.165669 & 11.274066 & 10.477260 & 9.763223 & 9.121638 & 8.543631 & 8.021553 & 7.119630 & 6.372859 & 5.748704 & 4.774634 \\ \hline 18 & 12.659297 & 11.689587 & 10.827603 & 10.059087 & 9.371887 & 8.755625 & 8.201412 & 7.249670 & 6.467420 & 5.817848 & 4.812195 \\ \hline 19 & 13.133939 & 12.085321 & 11.158116 & 10.335595 & 9.603599 & 8.905115 & 8.364920 & 7.365777 & 6.550369 & 5.877455 & 4.843496 \\ \hline 20 & 13.590326 & 12.462210 & 11.469921 & 10.594014 & 9.818147 & 9.128546 & 8.513564 & 7.469444 & 6.623131 & 5.928841 & 4.869580 \\ \hline \end{tabular}