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Balloons By Sunset (BeS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information
Balloons By Sunset (BeS) 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: (Euture Volue of \$1. Ptesent Valiee of S1. Eufure Value Annulfy of \$1. Present Value Annivityof 5i.) Note: Use appropriate factor(s) from the tables provided. Assume straight ine depreciation method is used. Required: Help B8S evaluate this project by calculating each of the following 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback period. Notes Round your answer to 2 decimal places. 3. 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. 4. Recalculate the NPY assuming BgS cost of capital is 12 petcent, Note: Do not round intermediate calculations. Negative amount ahould be indicated by a minus sign. found the final answer to nearest whole dollac. Assume straight line depreciation method is used. Required: Help B8S evaluate this project by calculating each of the following: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback period. Note: Round your answer to 2 decimal places. 3. 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 dollat. 4. Recalculate the NPN 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 dollar
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