2 E11-4 (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) 2 points Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: 20448.37 Initial investment (2 limos) Useful le Salvage value Annual net income generated LLT'S cost of capital eBook $1,380,000 10 years $ 130,000 $ 128,340 150 Print References Assume straight line depreciation method is used, Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return 2. Payback period, 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 15%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return % 2 E11-4 (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) 2 points Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: 04:48:04 Initial investment (2 limos) Useful life Salvage value Annual net income generated LIT's cost of capital Book $1,380,000 10 years $ 130,000 $ 128,340 150 Hint Print References Assume straight line depreciation method is used Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 15% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Calculate payback period. (Round your answer to 2 decimal places.) Payback Period years Saved 2 Calculate net present value. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present V. Annuity of $1.) (Use appropriate factor(s) from the tables provided. Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values to the nearest whole dollar amount.) 2 points Shos 04:47:07 Present Value of $1 Table or Calculator Function: Cash Outflow (Beginning of the Year) na eBook 1 = 0 151% Hint Present Value $ 1,380,000 Print References Table or Calculator Function: Cash Inflow (for Next 10 Years) Present Value Annuity of $1 $ 253,340 10 15% n = Table Factor Present Value Table or Calculator Function Cash Inflow (for 10th Year) Present Value of $1 $ no 130,000 10 151% Tablo Factor Present Value Total Net Present Value