Exercise 10-5A (Algo) Determining net present value LO 10-2 Thornton Company Is considering...
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Exercise A Algo Determining net present value LO Thornton Company Is considering Investing in two new vans that are expected to generate combined cash Inflows of $ per year. The vans' combined purchase price is $ The expected life and salvage value of each are elght years and $ respectlvely. Thornton has an average cost of capital of percent. PV of $ and PVA of $ Note: Use approprlate factors from the tables provided. Requlred a Calculate the net present value of the Investment opportunity. Note: Negative amount should be Indlcated by a minus sign. Round your Intermedlate calculations and final answer to decimal places. b Indicate whether the Investment opportunity is expected to earn a return that is above or below the cost of capltal and whether it should be accepted. 
Exercise A Algo Determining net present value LO
Thornton Company Is considering Investing in two new vans that are expected to generate combined cash Inflows of $ per
year. The vans' combined purchase price is $ The expected life and salvage value of each are elght years and $
respectlvely. Thornton has an average cost of capital of percent. PV of $ and PVA of $
Note: Use approprlate factors from the tables provided.
Requlred
a Calculate the net present value of the Investment opportunity.
Note: Negative amount should be Indlcated by a minus sign. Round your Intermedlate calculations and final answer to
decimal places.
b Indicate whether the Investment opportunity is expected to earn a return that is above or below the cost of capltal and whether it
should be accepted.
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