1. Accounting rate lof return

2. Payback Period

3. Net Present Value

4. Cost of capital is 3 percent, what is the new Net Present Value?

Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA). Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 250,000 $ 10 years 25,000 $ 5,600 8% Assume straight line depreciation method is used