Balloons By Sunset $($BBS$)$ is considering the p$$rchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the propesed investment follows: $($Future Value of $$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

BBS$\text{'}$s cost of capital

$$442,000$

$$58,00$ years

$$58,000$ $$37,570$

$10\%$

Assume straight line depreciation method is used.

Required:

Help BBS evaluate this project by calculating each of the following:

Accounting rate of return.

Note: Round your answer to $2$ decimal places.

Payback period.

Note: Round your answer to $2$ decimal places.

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.

Recalculate the NPV assuming BBS$\text{'}$s cost of capital is $13$ percent.

Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.