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.)

Note: Use appropriate factor(s) from the tables provided.

Initial investment (for two hot air balloons)	$ 455,000
Useful life	10	years
Salvage value	$ 55,000
Annual net income generated	$ 35,490
BBSs cost of capital	10	%

Assume straight line depreciation method is used.

Required:

Help BBS evaluate this project by calculating each of the following:

Accounting rate of return.

Note: Round your answer to 2 decimal places.

Payback period.

Note: Round your answer to 2 decimal places.

Net present value (NPV).

Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.

Recalculate the NPV assuming BBS's cost of capital is 13 percent.

Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.