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 Annuity of $1. Present Value Annuity 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 Bes's cost of capital $ 339,000 7 years $ 59,000 26,781 8 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 4. Recalculate the NPV assuming BBS's cost of capital is 11 percent (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) % years 1. Accounting rate of return 2. Payback period 3. Not present value 4. Net present value assuming 11% cost of capital