Exercise 10-5A (Algo) Determining net present value LO 102 Thomton Company 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 $93,500. The expected life and salvage value of each are four years and $21,200. respectively. Thornton has an average cost of capital of 16 percent. (PV of \$1 and PVA of \$1) Note: Use eppropriate factor(s) from the tables provided. Required a. Calculate the net present value of the investment opportunity. Note: 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