Question: Help please!! Exercise 16-5A (Algo) Determining net present value LO 16-2 Walton Company is considering investing in two new vans that are expected to generate
Exercise 16-5A (Algo) Determining net present value LO 16-2 Walton Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,000 per year. The vans' combined purchase price is $96,500. The expected life and salvage value of each are eight years and $21,300, respectively. Walton has an average cost of capital of 16 percent. (PV of $1 and PVA of \$1) (Use appropriate factor(s) from the tabies 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 Exercise 16-5A (Algo) Determining net present value LO 16-2 Walton Company is considering investing in two new vans that are expected to generate combined cash inflows of $25,000 per year. The vans' combined purchase price is $96,500. The expected life and salvage value of each are eight years and $21,300, respectively. Walton has an average cost of capital of 16 percent. (PV of $1 and PVA of \$1) (Use appropriate factor(s) from the tabies 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
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