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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. Various Information

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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. Various Information about the proposed investment follows: Eure Values Present Value of $1 Erture Value Annully of $1. Present Value Annully or $1.) (Use appropriate factor(s) from the tables provided) $352.009 Initial Investment (for two hot air balloons) Useful life Salvage value Renal met Income benerated BOSS 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 2 decimal places.) 2. Payback period (Round your answer to 2 decimal places.) 3. Net present Value INV (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 BOSS cost of capitals 14 percent (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) Swan Company has two divisions, Hill and Paradise Hill produces a unit that Paradise could use in its production. Paradise currently is purchasing 4400 units from an outside supplier for $50. Hill is operating at less than full capacity and has variable costs of $24. 80 per unit. The full cost to manufacture the unit is $3740. HA Currently sells 449.400 units at a selling price of $55.60. How much wil Paradise save by not purchasing from outside of a transfer price of $36 is agreed upon? Multiple Choice 561600 O O $55.000 O O 0 56.400 more cost o 22400 O

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