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Calculate the net present value of the investment

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Question: Thornton Company is considering investing in two new vans that are expected to generate combined cash inflows of $33,500 per year. The vans' combined purchase price is $91,000. The expected life and salvage value of each are eight years and $20,200, respectively. Thornton has an average cost of capital of 10 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required - Calculate the net present value of the investment opportunity.

Reference no: EM131760470

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