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Perez Company is considering investing in two new vans that are expected to generate combined...

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Accounting

Perez Company is considering investing in two new vans that are expected to generate combined cash inflows of $27,500 per year. The vans combined purchase price is $100,000. The expected life and salvage value of each are five years and $21,000, respectively. Perez has an average cost of capital of 16 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

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