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Solomon Company is considering investing in two new vans that are expected to generate combined cash inflows of $ 2 5 , 0 0 0
Solomon Company is considering investing in two new vans that are expected to generate combined cash inflows of $ per year. The vans combined purchase price is $ The expected life and salvage value of each are four years and $ respectively. Solomon has an average cost of capital of percent. PV of $ and PVA of $Use appropriate factors from the tables provided.
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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 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.
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