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 Useful life Salvage value Annual net income generated FCA's cost of capital $ 110,000 10 years $10,000 4,200 10% Assume straight line depreciation method is used & Required: Help FCA evaluate this project by calculating each of the following 1. Accounting rate of return (Round your answer to 2 decimal places.) Accounting Rate of Return 0.07% Falcon Crest Aces (FCA). Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and serial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 110,000 10 years $ 10,00 4,200 Assume straight line depreciation method is used 2. Help FCA evaluate this project by calculating each of the following: Payback period. (Round your answer to 2 decimal places.) Payback period years 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 $ 110,000 Useful life 10 years Salvage value $ 10,00 Annuai net incone generated 4,200 FCA's cost of capital Assume straight line depreciation method is used. 3. Help FCA evaluate this project by calculating each of the following: Net present value (NPV). (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. Negative amount should be Indicated by a minus sign. Round the final answer to nearest whole dollar.) Net Present Value 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: $ 110,000 10 years Initial investment Useful life Salvage value Annual net income generated FCA'S cost of capital $ 10,000 $ 4,200 103 Assume straight line depreciation method is used. 4. Help FCA evaluate this project by calculating each of the following: Recalculate FCA'S NPV assuming the cost of capital is 6 percent. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of 51 (Ure appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar amount.) Net Present Value 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 $ 110,000 Useful life 18 years Salvage value 10,000 Annual net income generated $ 4,200 FCA's cost of capital 10% Assume straight line depreciation method is used. 3. Without doing any calculations, what is the project's IRR? Multiple Choice Greater than 10% O Less than 6% Between 6 and 10%
