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) (Use appropriate factor(s) from the tables provided.) Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated Bas's cost of capital $ 383,000 6 years $ 53,000 29,186 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 (NPV). (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 BBS's cost of capital is 10 percent. (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) Answer is complete but not entirely correct. 1 2. 3 4 Accounting rate of return Payback period Net present value Net presentave assuming 10% cost of capital 13,33% 4.56 years (34.884) 100,832) $ $ TABLE 11.1A Future Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 1 10200 10300 1.0375 10400 10425 10500 1.0600 10700 10800 2 1.0404 10609 1.0764 1.0816 1.0868 11025 11236 11449 11664 3 1.0612 1.0927 1.1168 11249 1.1330 11576 1.1910 12250 12597 4 10824 11255 1.1587 1.1699 11811 12155 12625 1.3108 13605 5 1.1041 11593 12021 12167 12313 12763 13382 1.4026 14693 6 1.1262 1.1941 12472 1.2653 12837 13401 1.4185 1.5007 15869 7 11487 12299 12939 13159 13382 1.4071 15036 16058 17138 8 1.1717 12668 1.3425 13686 13951 14775 1.5938 17182 18509 9 1.1951 1.3048 1.3928 1.4233 1.4544 1.5513 1.6895 1.8385 19990 10 12190 13439 14450 1.4802 15162 16289 17906 19672 21589 20 14859 18061 20882 2 1911 22989 26533 32071 3.8697 46610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0 1.0000 10000 10000 10000 10000 10000 10000 1.0000 10000 1 10900 1.1000 1.1100 11200 1.1300 11400 11500 1.2000 12500 2 11881 12100 12321 12544 12769 12996 13225 14400 15625 3 1.2950 13310 13676 14049 14429 14815 15209 17280 19531 4 1.4116 14641 1.5181 15735 16305 16890 1.7490 2.0736 24414 un 15386 16105 16851 17623 1 8424 19254 20114 2.4883 30518 6 16771 17716 18704 19738 20820 21950 2 3131 2.9860 3 8147 7 1.8280 1.9487 2.0762 22107 2.3526 2.5023 26600 3.5832 4.7684 8 19926 21436 2 3045 2.4760 2.6584 28526 30590 42998 5.9605 9 21719 2 3579 25580 27731 30040 32519 35179 51598 74505 10 2.3674 25937 2.8394 31058 3.3946 3.707240456 6.1917 93152 20 5.6044 57275 80623 9.5453115231 137435 15 3665 38 3376 86 7362 TABLE 11.2A Present Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 0.8573 3 0.9423 0.9151 0.8954 0.8890 0.8826 0.8638 0.8396 0.8163 0.7938 4 0.9238 0.8885 0.8631 0.8548 0.8466 0.8227 0.7921 07629 0.7350 5 0.9057 0.8626 0.8319 0.8219 0.8121 0.7835 0.7473 0.7130 0.6806 LO 0.8880 0.8375 0.8018 0.7903 0.7790 0.7462 0.7050 0.6663 0.6302 7 0.8706 0.8131 0.7728 0.7599 0.7473 0.7107 0.6651 0.6227 0.5835 00 0.8535 07894 0.7449 0.7307 0.7168 0.6768 0.6274 0.5820 0.5403 9 0.8368 0.7664 0.7180 0.7026 0.6876 0.6446 0.5919 0.5439 0.5002 10 0.8203 0.7441 0.6920 0.6756 0.6595 0.6139 0.5584 0.5083 0.4632 20 0.6730 0.5537 0.4789 0.4564 0.4350 0.3769 0.3118 02584 0.2145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8333 0.8000 2 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.6944 0.6400 3 0.7722 0.7513 07312 0.7118 0.6931 06750 0.6575 0.5787 0.5120 4 0.7084 06830 0.6587 0.6355 06133 05921 05718 0 4823 0.4096 5 0.6499 062090.5935 0.5674 0.5428 0.5194 0.49720.4019 0.3277 6 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.3349 0.2621 7 0.5470 05132 04817 0.4523 0.4251 03996 0.3759 02791 02097 8 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 02326 0.1678 9 0.4604 0.4241 0.1342 0.3909 0.3606 0.3329 0.3075 0.2843 0.1938 10 0.1074 0.4224 0.3855 0.3522 0.3220 0.2946 0.269702472 01615 20 01784 01486 01240 01037 00868 00728 00611 00261 00115 TABLE 11.3A Future Value of an Annuity of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1 1.0000 10000 1.0000 1.0000 1.0000 1.0000 1.0000 10000 10000 2 2.0200 20300 2.0375 20400 20425 20500 20600 20700 2 0800 3 3.0604 3.0909 3.1139 31216 31293 31525 3.1836 3.2149 32464 4 4.1216 4.1836 4.2307 4.2465 42623 4.3101 4.3746 4.4399 4.5061 5 5.2040 5.3091 5.3893 5.4163 5.4434 5.5256 5.6371 57507 5.8666 6 6.3061 6.4684 6.5914 6.6330 6.6748 6.8019 6.9753 71533 73359 7 7.4343 7.6625 7.8386 7.8983 79585 8.1420 8.3938 8.6540 8.9228 8 8.5830 8.8923 91326 9.2142 9 2967 9.5491 9.8975 102598 10.6366 9.7546 10.1591 10.4750 10.5828 10.6918 OD 11.0266 11.4913 11.9780 12.4876 10 13 8164 14.4866 10.9497 11.4639 11.8678 12.0061 12.1462 12.5779 13.1808 242974 26.8704 29.0174 29.7781 30.5625 33 0660 36.7856 9% 10% 11% 12% 13% 14% 15% 20 40 9955 45.7620 20% 25% Periods 10000 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 10000 10000 20900 2 2.1000 21100 2.1200 2.1300 21400 21500 2.2500 22000 3.2781 3 3 3100 3 3421 3.3744 3.4069 3.4396 3.4725 36400 3.8125 4 4.5731 4.6410 4.7097 4.7793 4.8498 4.9211 4.9934 5.3680 5.7656 5.9847 6.1051 6.2278 5 6.3528 6.4803 66101 6.7424 74416 8.2070 75233 77156 79129 8 1152 8 3227 6 8.5355 87537 11 2588 99299 9.2004 9.4872 7 9.7833 11.0668 10,0890 10.4047 10.7305 12.9159 15.0735 11.4359 11 8594 110285 12.2997 127573 13.2328 13.7266 16.4991 19.8419 00 14 1640 130210 13 5975 9 147757 15 4157 16 0853 167856 20798925 8023 10 15 1929 15.9374 16.7220 17.5487 18.4197 19 3373 20.3037 25.9587 33 2529 20 511601 572750 64 2028 720524 80.9468 910249 102.4436 186.6880 342 9447 TABLE 11.4A Present Value of Annuity of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 1.9416 1.9135 1.8929 1.8861 1.8794 1.8594 1.8334 1.8080 17833 3 2.8839 2.8286 2.7883 2.7751 2.7620 2.7232 26730 26243 25771 4 3.8077 3.7171 3.6514 3.6299 3.6086 3.5460 3.4651 3.3872 3.3121 5 4.7135 4.5797 4.4833 4.4518 4.4207 4.3295 4.2124 4.1002 3.9927 6 5.6014 5.4172 5.2851 5.2421 5.1997 5.0757 4.9173 4.7665 4.6229 7 6.4720 6.2303 6.0579 6.0021 5.9470 5.7864 5.5824 5.3893 5.2064 8 7.3255 7.0197 6.8028 6.7327 6.6638 6.4632 6.2098 5.9713 5.7466 9 8.1622 77861 7.5208 74353 7.3513 71078 6.8017 6.5152 6.2469 10 8.9826 8.5302 8.2128 8.1109 8.0109 77217 73601 70236 6.7101 20 16.3514 14.8775 13.8962 13.5903 13.2944 12 4622 11.4699 10.5940 9.8181 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.90090.8929 0.8550 0.8772 0.8696 0.8333 0.8000 2 1.7591 17355 17125 16901 16681 16467 16257 15278 1.4400 3 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 22832 21065 1.9520 4 3 2397 31699 31024 30373 2.9745 2.9137 28550 25887 23616 5 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 2.9906 2.6893 6 44859 43553 42305 4.1114 39975 38887 37845 33255 2.9514 7 50330 4.8684 4.7122 4.5638 44226 4.2883 4.1604 3.6046 3.1611 8 5.5348 5 3349 51461 4.9676 4.7988 46389 4.4873 3.8372 33289 9 5.9952 57590 5 5370 5.3282 5.1317 4.9464 4.7716 40310 34631 10 6.4177 6.1446 5.8892 56502 54262 5 2161 50188 4.1925 35705 20 91285 8.5136 79633 74694 7.0248 6.623162593 48696 3.9539