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Balloons By Sunset (BBS) is considering the purchase of two new hot air balioons so that it can expand its desert sunset tours. Various information
Balloons By Sunset (BBS) is considering the purchase of two new hot air balioons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of \$1, Piesent Volue of \$1. Future Value Annuity of \$1, Present Value Annuity of $1 ) Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used. Required: Help BBs evaluate this project by calculating each of the following 1. Accounting rate of return. Notet Round your answer to 2 decimal places. 2. Payonck period Notel Round your answer to 2 decimal pleces. 3. Net presen value (NPV) Note: Do not round imtermediate calculations. Negative amount should be indicated by a minus sign. Alound the final answer to nearest whole dollar. 4. Recalculote the NPV assuming BBs cost of caphat is 14 percent Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole doller
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