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Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Varlous information
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Varlous information about the proposed investment follows: (Future Value of \$1. Present Value of \$1, Future Value Annuity of \$1. Present Value Annuilyc of S1:) Note: Use oppropriate foctor(s) from the tables provided. Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the followng: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback pertod. Note: Round your answer to 2 decimal ploces. 3. Net present value (NPV). Note: Do not round intermediate colculotions. Negotive amount should be indicated by a minus sign. Round the final onswer to neorest whole dollar. 4. Recalculate the NPV assuming BBS's cost of capital is 12 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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