Walton Company is considering investing in two new vans that are expected to generate combined cash inflows of $27,500 per year. The vans' combined purchase price is $90,500. The expected life and salvage value of each are five years and $20,400, respectively. Walton has an average cost of capital of 14 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. 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.) 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. Net present value b. Will the retum be above or below the cost of capital? Should the investment opportunity be accepted? Garrison Rentals can purchase a van that costs $54,000; it has an expected useful life of three years and no salvage value. Garrison uses straight-line depreciation. Expected revenue is $36,000 per year. Assume that depreciation is the only expense associated with this investment Required Terences a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment (Round your answer to 1 decimal place.(i.e. 234 should be entered as 23.4).) Payback period Unadusted rate of return