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Calculate the net present value of investment opportunity

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Rundle 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 $95,500. The expected life and salvage value of each are eight years and $20,300, respectively. Rundle has an average cost of capital of 16 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

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Question 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.)

Reference no: EM132461816

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