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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

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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 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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