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Callaghan has an average cost of capital of 10 percent

Question - Callaghan Company is considering investing in two new vans that are expected to generate combined cash inflows of $30,500 per year. The vans' combined purchase price is $93,000. The expected life and salvage value of each are five years and $21,500, respectively. Callaghan has an average cost of capital of 10 percent.

Calculate the net present value of the investment opportunity.

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Accounting Basics: Callaghan has an average cost of capital of 10 percent

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Accounting Basics: Callaghan has an average cost of capital of 10 percent

Reference No:- TGS02530110

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