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..................................0 Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours various

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Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours various information about the proposed investment follows: {Future Value of $1, Present Value of $1, Future Value Annuity ot$1, Present Value Annurty of $1.) (Use appropriate factorts) from the tables provided.) Initial investment (for two hot. air balloons) $ 529.000 Usetul life 10 years Salvage value $ 59.000 Annual net income generated 46.023 BBS's cost of capital 10% Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the lollowrng: 1. Accounting rate of relum. [Round youranswerto 2 decimal places.) 2. Payback period. [Round your answerto 2 decimal places.) 3. Net present value (NPV). [Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) at. Recalculate the NPV assuming BBS's cost of capital is 13 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the nal answerto nearest whole dollar.) Accounting rate of return Payback period Net present value P'P'N.4 Net present value assuming 13% cost 0| capital

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