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)	$	353,000
Useful life		7	years
Salvage value	$	45,000
Annual net income generated		32,123
BBSs cost of capital		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 1 decimal place.)

2) Payback period. (Round your answer to 2 decimal places.)

3) Net present value (NPV). (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated 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. (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.)

514874562 451 25940879437 123457891 8 8 8876 7 527 593 113 789 0525 703605 11539 7718 36925 2 0517 5 4566 4 01122 8277 11222 137 113 5406 8 953 9 739 261 11223 471 01611 785 25043 871295802 732 371 01567 975 531 31 64 0 1 4 4 5 3 2 12346791357 9 11122338 ! 6610694 8217 241277109 681595 24791 01234567890 01234567890