Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that information about the proposed investment follows: (Future Value of $1, Present Value of 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 BBS's cost of capital $ 328,000 7 years $ 55,000 25,912 98 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 sh the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capital is 12 percent. (Do not round intermed should be indicated by a minus sign. Round the final answer to nearest whole dollar.) 1. Accounting rate of return 2. Payback period 3. Net present value 4. Net present value assuming 12% cost of capital % 5.05 years