Solomon Company is considering investing in two new vans that are expected to generate combined cash inflows of $$25,500$ per year. The vans' combined purchase price is $$97,500.$ The expected life and salvage value of each are eight years and $$21,300,$ respectively. Solomon has an average cost of capital of $16$ percent. $($PV of $$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.

$\backslash$table$[[$a$.$ Net present value$],[$b$.$ Will the return be above or below the cost of capital?$],[$b$.$ Should the investment opportunity be accepted?$]]$