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All the information is mentioned above. Balloons By Sunset (BBS) Is considering the purchase of two new hot air balloons so that it can expand
All the information is mentioned above.
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: (Future Value of $1, Present Value of $1, Future Value Annulty of $1, Present Value Annulty of \$1.) Note: Use approprlate factor(s) from the tables provided. Assume stralght line depreciation method is used. Requlred: 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 perlod. Note: Round your answer to 2 decimal places. 3. Net present value (NPV). Note: Do not round Intermedlate calculations. Negative amount should be indlcated by a minus sign. Round the final answer to nearest whole dollar. 4. Recalculate the NPV assuming BBS's cost of capital is 11 percent. Note: Do not round Intermedlate calculations. Negatlve amount should be Indlcated by a minus sign. Round the final answer to nearest whole dollarStep by Step Solution
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