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: (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value 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 $ 414,000 7 years $ 57,000 33,534 10% 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 should be indicated by a mission the final answer to nearest whole dollar) 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) mediate calculations. Negative amount should be the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent. (Do not round intermediate cal should be indicated by a minus sign. Round the final answer to nearest whole dollar.) 8.10/% 1. Accounting rate of retu 2. Payback period 3. Net present value 4. Net present value assuming 13% cost of capital years Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: Cost of expansion Discount rate Useful life Annual rental income Annual operating expenses $3,110, eee 8% 20 $2,150,000 $2,700,000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2.720.000, expansion Required: 1. Calculate the annual net operating income from the 2. Calculate the annual net cash inflow from the expansion 3. Calculate the ARR (Round your answer to 2 decimal places.) 4. Calculate the payback period (Round your answer to 1 decimal place.) 5. Calculate the NPV. Euture Value of $1. Present Value of $1. Future Value Annuity of St. Present at Anout Us appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest wnole 4. Calculate the paypack period. (Round your answer to i decimai piace.) 5. Calculate the NPV. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round y dollar amount.) X Answer is complete but not entirely correct. 1. 2. Annual Operating Income Annual Net Cash Inflow ARR Payback Period $ 450,000 $ 469,500 14,47 6.6 % 3. years 4. 5 NPV $ 2,083,037