1 PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return (LO 11-1, 11-2, 11-3, 11-4) 5 points Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset fours. Various information about the proposed investment follows: (Future Value of $1. Present Value of St. Future Value Annuity of $1. Present.Value Annulty of $1.) (Use appropriate factor(s) from the tables provided.) Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated BAS's cost of capital $ 467,000 10 years $ 57,000 40,162 95 Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return (Round your answer to 2 decimal places.) 2. Payback period (Round your answer to 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) 4. Recalculate the NPV assuming BBS's cost of capital is 12 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar)