Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

could someone provide answers for 2,3,4 Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand

could someone provide answers for 2,3,4 image text in transcribed
image text in transcribed
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its decort sunset fours. Various information about the proposed investment follows. Future Value of $1. Present Value of St. Future Value Annay of St. Procont Value Annuity of $ (Use appropriate factors from the tables provided) Totes or wo we air balloons US Salvage value Annettorated DOS cost of catal 112,000 7 years $ 25,000 115 24.3 Assume straight line depreciation method is used. Required Help BUS valuate this project by calculating each of the following 1. Accounting rate of rotum. (Round your answer to 2 decimal places. 2. Payback period (Round your answer to 2 decimal places) 2. Not present Value INPV) (Do not round intermediate calculations. Negative amount should be indicated by a minus sign Round the final answer to nearest whole dollar) 4. Rochiuloa the NPV assuming DBSs cost of cooltel Ds 14 percent. Do not round Intermediate calculations. Negative amount should be indkated by a minus sign, Round the final answer to nearest whole dollar Answer is not complete 1700 40 years courange of reta Payback period Net Notenticostal 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: (Future 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.) $ 312,000 Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated BBS's cost of capital 7 year's $ 46,000 24,024 Assume straight line depreciation method is used Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of retum (Round your answer to 2 decimal places:) 2. Payback period. (Round your answer to 2 decimal places.) 3. Net present value (NPV). (Do not found 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) 7.70% 4.45 years 1. Acoounting rate of return 2. Payback period 3. Net present value 4. Net present value assuming 14% cost of capita w

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IS Audit And Control For Accountants

Authors: Mr Amir Manzoor

1st Edition

1493665006, 978-1493665006

More Books

Students also viewed these Accounting questions