Walton Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,500 per year. The vans' combined purchase price is $95,500. The expected life and salvage value of each are seven years and $21,600, respectively. Walton 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 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. a. Net present lue b. Will the return be above or below the cost of capital? Should the investment opportunity be accepted? Rooney Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $190,000 and $158,000, respectively. The present value of cash inflows and outflows for the second alternative is $365,000 and $295,000, respectively Required a. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.) b. Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.) c. Indicate which investment will produce the higher rate of return a. Alternative 1 (NPV) (NPV) lternative b. Altenative 1 (PVI) Alternative 2 (PVI) c. The investment that will produce the higher rate of return is