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Linda's Luxury Travel (L L T) is considering the purchase of two Hummer limousines Various information about the proposed investment 140, ee 157,140 follows: Initial inuestment Useful life Saluage ualue (2 limos) $1 ee I e years Annual net incane generated L LT's cost of capital Assume straight line depreciation method is use(i Required: Help L LT evaluate this project by calculating each of the following 1. Accounting rate of returrn 2. Payback peri0(i 3. Net present value 4. Without making any calculations determine whether the IRR is more or less than 15% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.)

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