Solomon Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,000 per year. The vans combined purchase price is $95,000. The expected life and salvage value of each are eight years and $21,100, respectively. Solomon has an average cost of capital of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

-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.)

-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	?