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Thornton Companyr 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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Thornton Companyr 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 $94,500. The expected life and salvage value ofeach are seven years and $20,700, respectively. Thornton has an average cost of capital of 12 percent. IPV of $1 and PVA of $1] [Use appropriate factorfs} from the tables provided.) Required a. Calculate the net present value ofthe investment opportunity. {Negative amount should be indicated bya minus sign. Round your intermediate calculations and final answer to 2 decimal places.) In. 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. 9 Answer is not complete. a. Net present value b. Will the return be above or below the cost of capital? Above 0 Should the investment opportunity he accepted? Accepted 0

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