Callaghan Company is considering investing in two new vans that are expected to generate combined...
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Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $28,000 per year. The vans combined purchase price is $98,500. The expected life and salvage value of each are five years and $21,900, respectively. Callaghan has an average cost of capital of 14 percent. 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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