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Calculate net present value of the investment opportunity

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Question - Lake Shuttle Inc. is considering investing in two new vans that are expected to generate combined cash inflows of $20,000 per year. The vans' combined purchase price is $65,000. The expected life and salvage value of each are four years and $15,000, respectively. Lake Shuttle has an average cost of 14 percent.

Calculate the net present value of the investment opportunity.

Reference no: EM131775842

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