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 $ 373,000 9 years $ 49,000 3e, 213 11% 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.) TABLE 11.1A Future Value of $1 Periods 2% 3% 3.75% 4.25% 5% 6% 7% 8% 0 10000 10000 10000 10000 10000 10000 10000 1.0000 1.0000 1 1.0200 10300 10375 10400 10425 10500 10600 10700 1.0800 2 10404 10609 10764 10816 10868 11025 11236 11449 11664 3 1.0612 10927 1.1168 11249 11330 11576 11910 12250 12597 4 1.0824 11255 1.1587 11699 11811 12155 12625 13108 13605 11041 1.1593 12021 12167 12313 12763 13382 14026 1.4693 5 6 11262 1.1941 12472 12653 12837 13401 14185 15007 15869 7 1.1487 1.2299 12939 13159 13382 14071 15036 16058 17138 8 11717 12668 13425 13686 13951 14775 15938 17182 1.8509 9 11951 13048 13928 14233 14544 15513 16895 18385 19990 10 12190 13439 1.4450 14802 15162 16289 17906 19672 2.1589 20 1.4859 18061 20882 21911 22989 26533 3.2071 3.8697 4,6610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0 1.0000 10000 10000 10000 10000 10000 10000 10000 1.0000 1 10900 11000 11100 1.1200 12500 11300 11400 1.1500 1 2000 12769 12996 13225 14400 2 1.1881 12100 12321 12544 1.5625 3 12950 13310 13676 14049 14429 14815 1.5209 17280 1.9531 4 14116 14641 15181 15735 16305 16890 17490 20736 24414 5 1.5386 16105 16851 17623 1.8424 19254 20114 2.4883 30518 6 16771 17716 1.8704 19738 20820 21950 2 3131 2.9860 3.8147 7 1.8280 1.9487 20762 22107 2.3526 2.5023 26600 3.5832 47684 00 199262.1436 2.3045 24760 26584 28526 30590 42998 5.9605 9 2.1719 23579 25580 27731 3.0040 3.2519 3.5179 5.1598 74506 10 23674 2.5937 2.8394 31058 3.3946 3.7072 40456 6.1917 9 3132 20 56044 67275 8.0623 96463 11:5231 137435 16:3665 38.3376 86.7362 TABLE 11.2A Present Value of $1 Periods 2% 3% 3.75% 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 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 0.8573 N 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 0.8548 0.8466 0.8227 07921 07629 07350 5 0.9057 0.8626 0.8319 0.8219 0.8121 0.7835 0.7473 07130 06806 6 0.8880 0.8375 0.8018 0.7903 0.7790 0.7462 0.7050 06663 06302 7 0.8706 0.8131 0.7728 0.7599 07473 0.7107 0.6651 0.6227 05835 0.8535 0.7894 0.7449 0.7307 0.7168 0.6768 0.6274 0.5820 0.5403 8 9 0.8368 0.7664 0.7180 0.7026 0.6876 0.6446 0.5919 0.5439 0.5002 10 0.8203 0.7441 0.6920 0.6756 0.6595 0.6139 0.5584 0.5083 0.4632 20 0.6730 0.5537 0.4789 0.4564 0.4350 0.3769 0.3118 0.2584 0.2145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8333 0.8000 2 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 07561 0.6944 0.6400 3 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.5787 0.5120 0.7084 0.68300.6587 0.6355 0.6133 0.5921 0.5718 0.4823 0.4096 4 5 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4019 0.3277 6 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.3349 0.2621 7 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0 2791 02097 8 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.2326 0.1678 9 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 02843 0.1938 0.1342 10 0.4224 0.38550.3522 03220. 0.2946 0.2697 0.2472 0.1615 0.1074 20 0.1784 0.1486 01240 0.1037 0.0868 0.0728 0.0611 0.0261 0.0115 TABLE 11.3A Future Value of an Annuity of $1 Periods 2% 3% 3.75% 4.25% 5% 6% 7% 8% 1 1.0000 10000 10000 1.0000 10000 10000 10000 10000 10000 2 20200 2.0300 20375 20400 20425 20500 20600 20700 20800 3 3.0604 3.0909 3.1139 3.1216 3.1293 3.1525 3.1836 3.2149 32464 4 4.1216 4.1836 42307 4.2465 4.2623 4.3101 43746 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 7.3359 7 74343 7.6625 78386 78983 79585 81420 8.3938 8.6540 8.9228 00 8.5830 8.8923 9.1326 92142 92967 9.5491 9.8975 10.2598 10.6366 9 97546 10.1591 10.4750 10.5828 10.6918 110266 11.4913 11.9780 12.4876 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 45.7620 Periods" 9% 10% 11% 25% 29.7781 30.5625 330660 36.7856 40.9955 12% 13% 14% 15% 20% 1.0000 1.0000 1.0000 10000 1.0000 2.1200 21300 2.1400 2.1500 2.2000 1 1.0000 1.0000 1.0000 10000 2. 2 0900 2.1000 21100 2 2500 3 3.2781 3.3100 3.3421 3 3744 3.4069 3.4396 3.4725 3.6400 38125 4 4.5731 4.6410 4.7097 4.7793 4.8498 4.9211 4.9934 5,3680 57656 5 5.9847 6.1051 6.2278 6.3528 6.4803 6.6101 67424 74416 8 2070 6 75233 77156 7.9129 8.1152 8.3227 8.5355 8.7537 9.9299 112588 7 9.2004 9.4872 9.7833 10.0890 10.4047 10.7305 110668 12 9159 15.0735 00 11.0285 11.4359 11.8594 12 2997 127573 13 2328 137266 16.4991 198419 9 13.0210 13.5975 14 1640 14.7757 15.4157 16.0853 16.7856 20.7989 25 8023 10 15.1929 15.9374 16.7220 17.5487 18.4197 19.3373 20 3037 25 9587 33 2529 20 511601 57.2750 64 2028 720524 80.9468 910249 102.4436 1866880 342 9447 There is one payment och persoa TABLE 11.4A Present Value of Annuity of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 19416 19135 1.8929 18861 1.8080 17833 1.8794 18594 18334 27620 27232 2.6730 2.8839 28286 27883 27751 26243 2.5771 3 4 5 3.8077 3.7171 3.6514 3.6299 3.6086 3.5460 3.4651 3.3872 3.3121 4.7135 4.5797 4.4833 4.4518 4.4207 4.3295 4.2124 4.1002 3.9927 6 5 6014 5.4172 5.2851 5.2421 5.1997 5.0757 4.9173 4.7665 4.6229 7 6.4720 62303 6.0579 60021 5.9470 5.7864 5.5824 5.3893 5.2064 00 73255 7.0197 6.8028 6.7327 6.6638 6.4632 6 2098 5.9713 5.7466 9 8.1622 77861 7.5208 74353 7.3513 71078 6.8017 6.5152 62469 10 8.9826 8.5302 8.2128 8.1109 8.0109 77217 73601 7.0236 6.7101 20 16 3514 14.8775 13.8962 13.5903 13.2944 12.4622 11.4699 10.5940 98181 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 09091 0.900908929 0.8550 0.8772 0.8696 0.8333 0.8000 N 17591 17355 17125 16901 16681 16467 16257 1.5278 14400 3 2.5313 2.4869 2.4437 2.4018 23612 2.3216 2.2832 2.1065 19520 4 3.2397 3.1699 3.1024 3.0373 2.9745 29137 2.8550 2.5887 2.3616 5 3.8897 37908 3.6959 36048 3.5172 3.4331 3 3522 2.9906 26893 6 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.3255 2.9514 7 5.0330 4.8684 4.7122 4.5638 4.4226 42883 4,1604 3.6046 3.1611 00 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 3.8372 3.3289 9 5.9952 57590 5.5370 53282 51317 4.9464 4.7716 4.0310 3.4631 10 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 50188 4 1925 3.5705 20 91285 8.5136 7.9633 74694 70248 6.6231 6.2593 48696 3.9539 "There is no payment sch period