Monterey company is considering investing in two new vans that are expected to generate combined cash inflows of $30,000 per year. the vans’ combined purchase price is $93,000. the expected life and salvage value of each are four years and $23,000, respectively. monterey has an average cost of capital of 7 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. (round your intermediate calculations and final answer to 2 decimal places.)
indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted.
a. net present value?
b. will the return be above or below the capital?
should the investment opportuntity be accepted?

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; i believe the correct answer is (tall); ///good luck

the correct option is c

c

explanation: