Callaghan Company is considering investing in two new vans that


Question Description:

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Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $34,500 per year. The vans’ combined purchase price is $97,000. The expected life and salvage value of each are five years and $21,200, respectively. Callaghan has an average cost of capital of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) 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.)

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