Exercise 16-5 Determining net present value LO 16-2 Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $26,500 per year. The vans' combined purchase price is $96,000. The expected life and salvage value of each are four years and $20,900, respectively. Callaghan has an average cost of capital of 14 percent (PV of $1 and PVA of $1) (Use appropriate factorfs) 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 intermediate calculations and final answer to 2 decimal places.) b-1. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital. Above Below b-2. Based on your answer in Requirement b-1, should the investment opportunity be accepted 0 Accepted O Rejected Achamomile-roman jpg A images (24pg 149 jpg ^ ; Type here to search