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: Intal investment (tor two hot air balloons) Useful lde $ 328.000 7 years $ 41.000 28,536 11% Salvage value Annual net income generated BBSS cost of capital 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 1 decimal place.) 87% Accounting Rate of Retun 2. Payback period. (Round your answer to 2 decimal places.) 472 Years Payback Period 3. Net present value (NPV). (Euture Value of $1. Present Value of $1. Euture Value Annuity.of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not rous Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Net Present Value ucanon.com/hm.fpx0.159745193657405535 1575083444050 nepun Help B85 evaluabe this project by calculating each of the foilowing 1. Accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rae of etam 87% 2. Payback period. (Round your answer to 2 decimal places.) 472 Vears Payback Penod 3, Net present value (NPV) (Euture Value of $1, Present Value of $1. Euture Value Annuty.of $1. Present Value Aonutly.of 51) (Use appropriate factorts) from the tables provided. Do not round intermediate calculations Negative amount should be indicated by a minus sign, Round the final answer to nearest whole dollar) Net Pesnt Valo 4. Recaloulate the NPV assuming BBS's cost of capital is 14 percent (Fuure Value .of $1. Present Varue.of $1. Future Value Annuty of 51. Present Value Armuty.of $1.)(Use appropriate factoris) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Net Present Waluo Present Value of Annuity of $1 TABLE 11.4A 7% 8% 5% 6% Periods 3.75% 4% 4.25% 2% 3% 0.9434 1.8334 2.6730 3.4651 0.9259 1.7833 2.5771 0.9346 0.9524 1.8594 2.7232 3.5460 4.3295 0.9592 1.8794 27620 3.6086 4.4207 5.1997 0.9709 1.9135 0.9639 1.8929 2.7883 0.9615 0.9804 1.9416 2.8839 3.8077 1.8080 2.6243 1.8861 2 3 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 2.8286 3.3872 4.1002 3.3121 3.7171 4.5797 3.6514 4 3.9927 4.6229 5.2064 4.2124 4.9173 4.4833 4.7135 5 4.7665 5.0757 5.7864 6.4632 5.4172 5.2851 6.0579 6.8028 7.5208 8.2128 5.6014 6.4720 7.3255 6 7 5.3893 5.9713 6.5152 7.0236 5.5824 5.9470 6.6638 7.3513 8.0109 13.2944 6.2303 6.2098 6.8017 7.3601 11.4699 5.7466 7.0197 7.7861 8 9 6.2469 6.7101 9.8181 7.1078 8.1622 8.9826 7.7217 8.1109 8.5302 14.8775 10 10.5940 124622 13.5903 13.8962 16.3514 20 20 % 25% 15% 14% 13% 12% 11% 10% Periods 9% 0.8000 0.8333 1.5278 0.8696 0.8550 0.8772 1.6467 0.8929 1.6901 2.4018 0.9009 1.7125 2.4437 0.9091 0.9174 1.4400 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 16681 2.3612 2.9745 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 8.5136 1.9520 1.7591 2.5313 3.2397 3.8897 2 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.8696 2.3216 2.3616 2.6893 2.9514 3.1611 3.3289 3.4631 3.5705 3.9539 2.9137 3.0373 3.1024 4 3.4331 3.5172 3.9975 4.4226 3.6048 4.1114 4.5638 4.9676 5.3282 3.6959 4.2305 3.8887 4.2883 4.4859 5.0330 6 4.7122 5.1461 5.5370 4.7988 4.6389 5.5348 4.9464 5.2161 6.6231 5.1317 5.9952 6.4177 9 5.4262 7.0248 5.6502 5.8892 7.9633 6.2593 10 7.4694 9.1285 20 There is one payment each period. un oNco