Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return LO 11-1, 11-2, 11-3, 11-4] value. 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: Initial investment (for two hot air balloons 420,000 Useful life 10 years Salvage value 50,000 37,800 Annual net income generated 11% BBS's cost of capital Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following 1. Accounting rate of return Accounting Rate of Return