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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
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: 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. Payback period. Payback 3. Net present value NPV). Recalculate the NPV assuming BBSs cost of capital is 13 percent
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