Rundle Company is considering investing in two new vans that are expected to generate combined cash inflows of $$28,500$ per year.

The vans' combined purchase price is $$90,500.$ The expected life and salvage value of each are five years and $$20,700,$ respectively.

Rundle has an average cost of capital of $12$ percent. $($PV of $$1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required

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

Note: 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 or REJECTED.