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Done AA ezt.prod.mheducation.com TABLE 11.3A Future Value of an Annuity of $1 Done AA ezt.prod.mheducation.com TABLE 11.4A Present Value of Annuity of $1 Done AA

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Done AA ezt.prod.mheducation.com TABLE 11.3A Future Value of an Annuity of $1 Done AA ezt.prod.mheducation.com TABLE 11.4A Present Value of Annuity of $1 Done AA ezt.prod.mheducation.com TABLE 11.2A Present Value of $1 Done AA ezt.prod.mheducation.com TABLE 11.1A Future Value of $1 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.) Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used. Required: Help BBS 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 dollar. 4. Recalculate the NPV assuming BBS's cost of capital is 14 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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