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 S1) (Use appropriate factor(s) from the tables provided.) Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated Bes's cost of capital 5510,000 6 years $ 58.00 24.110 11% A 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 minus sign. Round the final answer to nearest whole dollar) 4. Recalculate the NPV assuming BBS's cost of capital is 14 percent (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) 10 Next Heturn neYunu. 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 minus sign. Round the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capital is 14 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Answer is complete but not entirely correct. 1 2 3 4 Accounting rate of return Payback period Not present value Net present value assuming 14% cost of capital 13.14% 468 years 983 (257558) $ $ TABLE MA Futura Value of $1 4.29 7% 8% Periods 3.70% 10000 o 10000 10000 10000 10000 10000 10000 10000 10000 10700 10800 1 10200 10300 10375 10400 10425 10500 10600 11025 11236 11449 11664 2 10404 10609 10764 10816 10868 11910 11330 11575 12250 12597 10927 3 10612 11168 11249 12155 13108 12625 13605 4 10824 11587 11871 11255 11699 12313 12763 13382 14026 1.4693 5 11041 11593 12021 12167 13401 14185 15007 15869 6 11262 11941 12472 12653 12837 12939 13159 1.3382 16058 17138 1.407115036 11487 7 12299 15938 17182 18509 8 11717 14775 12668 13425 13686 13951 16895 18385 19990 11951 15513 13048 13928 14233 14544 9 10 2 1589 17906 19672 1552 16289 14450 14802 13439 12190 3 2071 38697 4.6610 20 14859 1.8061 20882 21911 2.2989 26533 25% 15% 20% Periods 115 9% 10% 13% 12% 10000 10000 0 10000 10000 10000 10000 10000 10000 10000 11300 1400 11500 12000 12500 1 1200 41100 10900 11000 13225 15625 14400 11881 12100 12321 12544 2769 12996 15209 17280 19531 12950 13676 140491492914815 13310 2.0736 2.4414 4 1416 14651 1518115735 1530516890 17490 6 000 1538616105 15851 17623 18424 19254 20114 24883 3.0518 16771 187049738 20820 21950 23131 2.9860 3.8147 18280 1948720762 2 2007 23525 2 5023 26600 35832 47624 1992625036 2 3045 2760 26584 29526 30590 42998 39605 217922579259921731 3100402 3.2519 5119 236742593728994 34058 3.39463707240456 69 93132 55044 67275302396153 152311174320 3450 10 TABLE 1.2A Present Value of $1 8% 6% 5% 4% 4.25% 3% 3.75% 2% Periods 1 09804 0.9709 0.9639 0.9615 0.9592 0.9524 09434 0.9346 0.9259 2 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 0.8573 3 0.9423 0.9151 0.8954 0.8890 0.8826 0.8638 0.8396 0.8163 0.7938 4 0.9238 0.8885 0.8631 08548 0.8466 0.8227 0.7921 07629 07350 0.7835 0.7473 0.7130 0.6806 5 0.9057 0.8626 0.8319 0.8219 0.8121 6 0.8880 0.8375 0.8018 07903 07790 0.7462 0.7050 06663 06302 7 0.8706 08131 07728 0759907473 0.7107 06651 06227 0.5835 B 0.8535 07894 07449 07307 07168 0.6768 0.6274 0.5820 0.5403 9 08368 07664 0.7180 07026 0.6876 06446 0.5919 05439 05002 10 0.8203 0.7441 06920 0.6756 06595 06139 0.5584 0.5083 0.4632 0.2584 02145 20 06730 05537 04799 0.4564 04350 0.3769 0.3118 15% 14% 20% 25% 13% 11% 9% 10% 12% Periods 09174 090910 9009 0.8929 0.8850 0.8772 08696 8333 0.8000 (8417 0826408116 0797207831 0.7695 0756106944 06100 0772207513 07312_07418 06931 06750. 06575 05787 0.5120 7084 0683006587_06355 06330.592 9571318204096 06499 16209 05935 05674 05428 654940-972 10 03277 0596305645054605066 043030455 452390 2521 08170452 04351. 0990127910789 5019016630040345812 For 224 0853 0352 0 30124010 TABLA 1.3A Future Value of an Annuity of $1 Periods 3% 2x 3.70% 4% 215% BX 7% OX 896 1.0000 10000 1 10000 1.0000 10000 10000 1.0000 1.0000 1.0000 2 20300 20200 20375 20400 20425 20600 20500 2.0800 20700 3.0604 3.0909 3 3.1139 3.1216 31293 31525 3.1836 32149 3.2464 4 41216 4.1836 42307 4.2465 4.2623 4 3101 4,3746 4.4399 4.5061 5 5.2040 5 3091 5 3893 5.4163 5.4434 5.5256 5.6371 57507 5.8666 6 6.3061 6.4684 6.5914 6.6330 66748 6.8019 6.9753 73359 71533 74343 76625 78386 78983 79585 8.1420 8.3938 8.6540 8.9228 8 8.5830 88923 91326 9.2142 9.2967 9 5491 98975 102598 10.6366 9 11.9780 12.4876 10 13.8164 14.4866 9.7546 101591 10,4750 10.5828 106918 110266 11 4913 10.9497 114639 11 8678 12.0061 12.1462 12 5779 13.1808 242974 268704 29.0174 297781 305625 23.0650 36.7856 9% 10% 11% 12 13% 14% 15% 20 40 9955 45.7620 Periods 20% 25% 10000 10000 10000 10000 10000 10000 10000 11,000 100.00 2 20900 21000 21100 2:1200 21300 2.1400 2.2000 2 2500 21500 34725 32781 313100 3 3421 33744 2 4059 4396 3.6402 3.8125 45734 46410 47097 42793 48498 49211 49934 59680 5270558 6.1051 2278 5:3528 5.4803 56101 57424 BE 22155 79129 852 8.3227 3199 SE2 100897 10 12065 59 2015 aras 1023 14969 SEBS 12 29972 REF 193995 1154 HE 15 167853 225 40264 18 2029 120 GEE TABLE 11.4A Present Value of Annuity of $1 Periods 3% 3.75% 4X 4.25% 5% 6% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 09592 0.9524 0.9434 0.9346 0.9259 2 19416 1.9135 18929 1.8861 18794 18594 18334 18080 17833 3 28839 28286 27883 27751 2.7620 2.7232 26730 26243 2.5721 4 3.8077 3.7171 3.6514 3.6299 36086 35460 34651 3.3872 3.3121 5 4.7135 4.5797 44833 44518 4.4207 43295 4.2124 4.1002 3.9927 6 5.6014 5.4172 5.2851 52421 5.1997 5.0757 4.9173 4.7665 46229 7 6.4720 6.2303 605796.00215.9470 57854 5.5824. 5.3893 52064 8 73255 7.0197 6.8028 6.7327 6.6638 5.4632 62098 5.9713 57466 9 81622 77861 75208 74353 73513 71078 68017 65152 6.2469 10 8.9826 8.5302 B.2128 81109 B0109 7.7217 73601 76236 6.7101 20 16.3514 14.8775 13.8962 13.5903 13.2944 12 4622 11:4699 10.5940 9.818 Periods to 9% TON 12% 13% 15% 20% 25% 09774 09091 0900908929 08550 0.8772 08696 08333 0.0000 17591 17355 17525 16581 16467 16257 15278 2485924237 24018 2.3512 232162 2852 37699 303732974529137285259972515 3:69593604835172 7990626893 38897 16 5461 59952575905 5370232 S85502 TE