Calculate the net present value of investment opportunity

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Reference no: EM131506596

Callaghan 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 $94,500. The expected life and salvage value of each are four years and $21,100, 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.)

Calculate the net present value of the investment opportunity.

Reference no: EM131506596

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