E11-4 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: $1,320,000 Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital 10 years 130,000 121,440 15% Assume straight line depreciation method is used Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your percentage answer to 1 decimal place.) Account ting Rate of Returm 2. Payback period. (Round your answer to 2 decimal places.) Payback Period Years