Balloons By Sunset {BBS} is considering the purchase oftwo 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 $1, Present Value An n uity0_f$_1-] {Use appropriate factor{s) from the tables provided.) Initial investment (for two hot air balloons) $ 529,660 Use'Ful life 16 years Salvage value 5 59,660 Annual net income generated 46,623 BBS's cost of capital 16% Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each ofthe following: 1. Accounting rate of return. (Round your answer to 2 decimal places.) 1 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 nal answer to nearest whole dollar.} Help 388 evaluate this project by calculating each ofthe following: 1. Accounting rate of return. {Round your answer to 2 decimal places.) 1 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 nal answer to nearest whole dollar.} 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent. {Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the nal answer to nearest whole dollar.} 9 Answer is complete but not entirer correct. Accounting rate of return Payback period 5.69 a 1,rears Net present value Net present value assuming 13% cost of capital