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1 Here / anus a cameram 11 information about the proposed investment follows: (Future Value of $1, Present Value of $1. Future Value Annuity
1 Here / anus a cameram 11 information about the proposed investment follows: (Future Value of $1, Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated 5 points Skipped BBS's cost of capital Assume straight line depreciation method is used. look $ 505,000 10 years $ 45,000 $ 37,875 11% References Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return Note: Round your answer to 2 decimal places. 2. Payback period. Note: Round your answer to 2 decimal places. 3. Net present value (NPV) Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. 4. Recalculate the NPV assuming BBS's cost of capital is 14 percent Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. 1. Accounting rate of return 2. Payback period 3. Net present value 4. Net present value assuming 14% cost of capital % years Che
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