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Zachary Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,500 per year. The vans combined purchase
Zachary Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,500 per year. The vans combined purchase price is $90,500. The expected life and salvage value of each are four years and $20,500, respectively. Zachary has an average cost of capitat of 12 percent. (PV of $1 and PVA of S1) Note: Use oppropriate factor(s) from the tobles provided. Required o. Calculate the net present value of the investment opportunity. Note: Negotive amount should be indicated by o minus sign. Round your intermediate calculations ond 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
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