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) 415,000 Useful life Salvage value Annual net income generated BBS's cost of capital 8 years $ 47,000 38,180 7% Assume straight line depreciation method is used Required: Help BBS evaluate this project by calculating each of the following . Accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return 2. Payback period. (Round your answer to 2 decimal places.) Payback Period 4.93 Years