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: (Euture Value of $1. Present Value of $1. Future Value Anulyo S1 Present Value Annuity of S1) (Use appropriate factor(s) from the tables provided.) Initial investent (for two hot air balloons) Useful life Solvage value Annual net income generated BUS's cost of capital $440,000 7 years $ 55,000 34,00 ZN Assume straight line depreciation method is used Required: Help BBS evaluate this project by calculating each of the folowing 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 cost of capitalis 10 percent (Do not round intermediate calculations. Negative amount hthalate Dinala na nart 8% Periods 5% 6% 3.75% 2% 3% 4% 7% 4.25% 10000 1.0000 1.0000 0 1.0000 1.0000 10000 10000 10000 10000 10700 1 10500 10600 10800 1.0200 10300 10375 1.0400 10425 2 10868 11236 10764 1.0816 1.1025 11449 11664 1.0404 10609 3 1.0612 10927 11168 1.1249 11330 1.1576 1.2597 1.1910 1.2250 4 11255 1.1587 10824 1.1699 11811 12155 12625 13108 1.3605 5 11041 1.1593 1.2021 1.2167 12313 12763 13382 14026 14693 6 1.1262 1.1941 1.2472 12653 12837 1.3401 1.4185 1.5007 1.5869 7 11487 1.2299 1.2939 1.3159 13382 1.4071 1.5036 1.6058 17138 8 11717 1.2668 13425 13686 1.3951 14775 1.5938 17182 1.8509 9 11951 13048 13928 14233 1.4544 15513 16895 18385 19990 10 12190 13439 14450 14802 1.5162 16289 17906 1.9672 2.1589 20 14859 1.8061 20882 21911 2.2989 26533 32071 38697 46610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0 10000 10000 10000 10000 10000 10000 1.0000 10000 10000 1 10900 1.1000 11100 11200 11300 11400 1.1500 1.2000 12500 2 11881 1.2100 1.2321 12544 1.2769 12996 13225 14400 1.5625 3 12950 13310 1367614049 1:4429 14815 1.5209 17280 19531 4 14116 14641 15181 15735 16305 16890 17490 20736 24414 5 15386 16105 16851 17623 18424 19254 20114 2.4883 3 0518 6 16771 17716 18704 19738 20820 21950 2 3131 2.9860 3.8147 7 1828019487 20762 22107 23526 25023 26500 3.5832 4.7684 8 19926 2.1436 2.3045 2.4760 26584 2.8526 3059042998 5.9605 9 2.1719 23579 25580 27731 3.0040 32519 3.5179 5.1598 74505 10 23674 25937 28394 31058 33946 32072 4.0496 6 1917 9.3132 20 56044 67275 805239646311523137435 16 3665 38 3376 85 7362 TABLE 112A Pregant Value of $1 2 Periods 23 34 BX 4.20% 5% 7 4% 3.75% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 09612 09426 0.9290 09246 09201 0.9070 08900 0.8734 08573 3 09423 09151 08954 0.8890 0.8826 08638 0.8396 0.8163 07938 4 09238 08885 0.8631 0 8548 0.8466 0.8227 07921 07629 07350 5 0.9057 0.8626 08319 08219 08121 07835 0.7473 0730 06806 6 0.8880 0.8375 0.8018 07903 07790 07462 07050 06663 06302 7 0.8706 0.8131 07728 07599 07473 07107 06651 06227 05835 8 08535 07894 07449 07307 07168 06768 06274 0.5820 0.5403 9 0.8368 0.7664 07180 0.7026 06876 06446 0.5919 0.5439 05002 0.8203 0.7441 06920 06756 06595 06139 0.5584 05083 04632 10 20 06730 05537 04789 04564 0.4350 03769 03118 02584 02145 Periods 9% 10% 115 12% 135 14% 15% 20% 25% 1 09174 09091 09009 08929 08850 08772 0.8696 0.8333 08000 2 0.8417 0.8264 0.8116 07972 07831 07695 0756106944 06400 0.7722 07513 07312 0711805931 06750 06575 0.5787 0.5120 3 4 07084 0683006587 06355 06133 05921 05718 0.4823 04096 5 06499 0620905995 05674 05428 0.5194 0497204019 0.3272 6 0.5963 056450.5345 05065 04803 04556 0.4323 03349 02621 7 0.5470 05132 04817 0452304251 039060375902791 02097 8 9 050190466504339 04039 03762 03506 0.3269 02326 01678 046040424103909 03605 0332901075 02843 0193803342 04224 038550392 03720 02945 02697 024720161501074 10 20 01784 0146 012400103700728 0051 026 00115 a 132 hp Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 10000 10000 1.0000 2.0600 20200 2.0300 2.0375 2.0400 2.0425 20500 2.0700 2. 3 2.0800 3 3.0604 3.0909 3.1139 3.1216 3.1293 3.1525 3.2149 3.2464 3.1836 4.3746 4 4.1216 4.1836 4.2307 4.2465 4.2623 4.3101 4.4399 4.5061 5 5.2040 5.3091 5.3893 5.4163 5.4434 5.5256 5.6371 5.7507 5.8666 6 6.3061 6.4684 6.5914 6.6330 6.6748 6.8019 6.9753 71533 73359 7 7 7.4343 76625 7.8386 7.8983 7.9585 8.1420 8.3938 8.6540 8.9228 8 8.5830 8.8923 9.1326 9.2142 9.2967 9.5491 9.8975 10.2598 10.6366 9 9.7546 10.1591 10.4750 10.5828 10.6918 11.0266 11.4913 11.9780 124876 10 10.9497 11.4639 11.8678 12.0061 12.1462 12.5779 13.1808 13.8164 14.4866 20 24.2974 26.8704 29.0174 29.7781 30.5625 33.0660 36.7856 40.9955 457620 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 20900 2.1000 21100 21200 2. 3 1.0000 1.0000 21300 21400 34069 3.4396 1.0000 21500 3.4725 2.2000 22500 3 3.2781 3.3100 3.3421 3.3744 3.6400 3.8125 4 4.5731 4.6410 4.7097 4.7793 4.8498 4.9211 4.9934 5.3680 5.7656 5 5.9847 6.1051 6.2278 6.3528 6.4803 6.6101 6.7424 7.4416 8.2070 09 75233 77156 79129 8.1152 8.3227 8.5355 87537 9.9299 11 2588 7 9.2004 9.4872 97833 10.0890 10 4047 107305 110668 12 9159 15 0735 8 11.0285 11.4359 118594 12 2997 12.7573 13 2328 137266 16.4991 19.8419 9 9 13.0210 13.5975 14 1640 147757 15 4157 16.0853 167856 20.7989 25.8023 10 15.1929 15 9374 16.7220 175487 18.4197 19 3373 20 3037 25.9587 33 2529 20 51.1601 57 2750 642028 720524 80 9468 91.0249 102 4436 1866880 342 9447 sono ammont obchodod Periods @ 2% 3% 3.78% 4% 4.25% 5% 6% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 1.9416 1.9135 1.8929 1.8861 1.8794 1.8594 1.8334 1.8080 1.7833 3 2.8839 2.8286 27883 27751 2.7620 2.7232 2.6730 26243 2.5771 4 3.8077 37171 3,6514 3.6299 3.6086 3.5460 3.4651 3.3872 3.3121 5 5 47135 4.5797 4.4833 4.4518 4.4207 43295 4.2124 41002 3.9927 6 5.6014 5.4172 5.2851 5.2421 5.1997 5.0757 4.9173 47665 4.6229 7 7 6.4720 6.2303 60579 6.0021 5.9470 57864 5.5824 5.3893 5.2064 8 7.3255 70197 6.8028 6.7327 6.6638 6.4632 6.2098 5.9713 5.7466 9 8.1622 7.7861 7.5208 74353 73513 71078 6.8017 6.5152 6.2469 10 8.9826 8.5302 8.2128 8.1109 8.0109 77217 73601 70236 67101 16.3514 14.8775 13.8962 13.5903 13.2944 12.4622 11.4699 10.5940 9.8181 20 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.9009 0.8929 0.8550 0.8772 0.8696 0.8333 0.8000 17125 1.6901 1.6681 1.6467 1.6257 1.5278 1.4400 2. 1.7591 1.7355 3 25313 2.4869 2 4437 24018 23612 23216 22832 21065 1.9520 4 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.5887 2.3616 un 5 3.8897 3.7908 3.6959 36048 3.5172 34331 3.3522 2.9906 2.6893 6 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.3255 2.9514 7 50330 4.8684 4.7122 4.5638 4.4226 42883 4.1604 3.6046 3.1611 8 5.5348 53349 5.1461 4.9676 47988 46389 44873 3.8372 3.3289 9 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.0310 3.4631 10 6 4177 6.1446 5.8892 565025 4262 5.2161 5 0188 4 1925 35705 20 91285 8.5136 79633 74694 70248 6.6231 6.2593 4.8696 3.9539 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 10 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 Accounting rate of retum Payback period Net present value Net present value assuming 10% cost of capital 8.17% 12.65 years 218 420) 124255313 $ $ 4