E11-4 (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] Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,740,000 10 years $ 140,000 $ 172,260 Assume straight line depreciation method is used Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return 2. Payback period 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 15%, Required 1 Required 2 Required 3 Required 4 Calculate net present value. (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. Cash Outflows and negative amounts should be Indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) Show less Table or Calculator Function: Cash Outflow (Beginning of the Year) n = % Present Value Table or Calculator Function: Cash Intlow (for Next 10 Years) na % Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n % Table Factor Present Value Total Net Present Value