Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows:

Initial investment	$	140,000
Useful life	$	10	years
Salvage value		10,000
Annual net income generated	$	3,400
FCA's cost of capital		6	%

Assume straight line depreciation method is used.

Help FCA evaluate this project by calculating:

1.) Accounting rate of return and payback period,

2.) Net present value (NPV). Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1 and Recalculate FCA's NPV assuming the cost of capital is 3% percent,