Zachary Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,000 per year. The vans' combined purchase price is $94,000. The expected life and salvage value of each are four years and $20,000, respectively. Zachary has an average cost of capital of 14 percent. (PV of $1andPVA of $1)(Use appropriate factor(s) from the tables provided.)

Required

1. Calculate the netpresent 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.)
2. 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.