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?

Suppose that hubert, an economist from an am talk radio program, and kate, an economist from a nonprofit organization on the west coast, are arguing over government bailouts. the following dialogue shows an excerpt from their debate: kate: to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. hubert: indeed, it’s gotten crazy! a government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. kate: i don’t know about that. without a bailout of severely distressed financial firms, the economy will experience a deep recession. the disagreement between these economists is most likely due todifferences in scientific judgments . despite their differences, with which proposition are two economists chosen at random most likely to agree? business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation. employers should not be restricted from outsourcing work to foreign nations

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.