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Balocns By Sunset BESI 5 considering the purchase of two new hot air balcons so that I can expand its desort Sunset lours. Various intcmmadon

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Balocns By Sunset BESI 5 considering the purchase of two new hot air balcons so that I can expand its desort Sunset lours. Various intcmmadon aboul the proposed iniment flows: 15 , ni ITX nu le Pr .. Annual net income generated 3885 cost of capital 22.30 Aminun mahulikul Requirect Hclip ses evaluate this procesty Golculatng cach of the rolowing: 1. Accounting rate of mourn (Round your answer to 1 decimal place. Kecourting Role of Acum 108 2. Puyback period (Round your answer to 2 decim Pytas Pant s 3. Not present vs. INP. Future Vaue of $1, Proson Value of S1, Future Value Ann.ity of $1. Present Value Annuity of 51. Use appropriate focton's) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) Ner: Present Value R$1. Prasan Situs Ann 1. Pet un Annulli, Use appropriate factors from the tables provided. Do not mound intermediate calculations. Negative amount should be 4. Rocaiulata te NPV a m ng OS cool capills 13 percent Round the final answer to nearest Whole dollari Nor Fraser 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 Initial investment for two hot air balloons) Use Salvage value Annual net income generated BBS cost of capital $ 434,000 10 years $ 44000 32.984 10% 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 1 decimal place.) Accounting Rate of Retums 7.6% 2. Payback period. (Round your answer to 2 decimal places.) Payback Period 6.08 Years 3. Net present value (NPV). (Euture Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provide dollar.) Net Present Value 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appre Round the final answer to nearest whole dollar) Net Present Value

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