Falcon Crest Aces (FCA), Incorporated, 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:

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Required information [ The following information applies to the questions displayed below] Required information Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking [The following information applies to the questions displayed below.] demonstrations and aerial tour business. Various information about the proposed investment follows: Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking Initial investment demonstrations and aerial tour business. Various information about the proposed investment follows: $ 220,606 Useful life 10 years Salvage value $ 25, 006 Initial investment $ 220,600 Annual net income generated $ 5,080 10 years FCA's cost of capital Salvage value $ 25, 000 Annual net income generated $ 5,000 FCA's cost of capital Assume straight line depreciation method is used. Assume straight line deprec ation method is used. Help FCA evaluate this project by calculating each of the following Help FCA evaluate this project by calculating each of the following: Required: 2. Payback period. Required: Note: Round your answer to 2 decimal places. 1. Accounting rate of return. Note: Round your answer to 2 decimal places. Payback Period years Accounting Rate of Return Required information [ The following information applies to the questions displayed below] Required information The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Incorporated, 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: Falcon Crest Aces (FCA), Incorporated, 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 $ 220, 000 Initial investment 10 Useful life $ 220, 600 Salvage value $ 25, 600 Salvage value 10 years Annual net income generated $ 5,000 Annual net income generated $ 5, 080 FCA's cost of capital 7% FCA's cost of capital Assume straight line depreciation method is used. Assume straight line depreciation method is used. Help FCA evaluate this project by calculating each of the following: Help FCA evaluate this project by calculating each of the following: Required: Required: 4. Recalculate FCA's NPV assuming the cost of capital is 3 percent. (Future Value of $1, Press Value of $1, Future Value Annuity of $1, 3. Net present value (NPV). (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount s Note: Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Round your final indicated by a minus sign. Round the final answer to nearest whole dollar. answer to the nearest who nearest whole dollar amount. Net Present Value Net Present Value