Check my work 1 PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return (LO 11-1, 11-2, 11-3, 11-4) Balcons by Sunset (BS) is considering the purchase of two new hot air balloons so that it can expand its desert Serttours Various Information about the proposed investment follows: But We arsi. Presentate $1 Euture Value Accuyo present Value Annuity S1) (Use appropriate foctor(sfrom the tables provided) 5 point TALTID 1st for the hot air ballons folie Selvage value Annual net nerated $9438,00 years $ 8.000 > Assume straight line depreciation method is used Required: Help as evaluate this project by taking each of the following 1 Accounting of retum (Round your answer to 2 decimal places) 2. Payback period (Round your answer to 2 decimal places) 3. Net present volue P. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. 4. Recakultete NPV assuming BBS's cost of capta percent 100 round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dolar) 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: (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 provided.) Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated BBS's cost of capital $ 418,000 3 years $ 58,eee 39,292 11% 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 14 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) years 1. Accounting rate of return 2. Payback period 3. Not present value 4. Net present value assuming 14% cost of capital