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Rundle Company is considering investing in two new vans that are expected to generate combined cash inflows of $29,500 per year The vans' combined purchase

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Rundle Company is considering investing in two new vans that are expected to generate combined cash inflows of $29,500 per year The vans' combined purchase price is $98,500 The expected life and salvage value of each are four years and $20.900, respectively Rundle has an average cost of capital of 12 percent (PV of S1 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. a Net present value b. Will the return be above or below the cost of capital? Should the investment opportunity be accepted

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