\fTABLE 11.2A Present Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0.9615 0. 9592 0.9524 0.9434 0.9346 0.9259 0. 9612 0. 9426 0.9290 0.9246 0. 9201 0.9070 0. 8900 0.8734 0. 8573 0.9423 0. 9151 0. 8954 0. 8890 0. 8826 0. 8638 0. 8396 0. 8163 0. 7938 0.9238 0. 8885 0. 8631 0. 8548 0. 8466 0.8227 0. 7921 0. 7629 0.7350 0.9057 0. 8626 0. 8319 0. 8219 0. 8121 0.7835 0.7473 0. 7130 0. 6806 0. 8880 0. 8375 0. 8018 0. 7903 0. 7790 0.7462 0. 7050 0. 6663 0. 6302 0. 8706 0. 8131 0. 7728 0. 7599 0. 7473 0. 7107 0. 6651 0. 6227 0. 5835 0. 8535 0. 7894 0. 7449 0. 7307 0. 7168 0. 6768 0. 6274 0. 5820 0. 5403 0. 8368 0. 7664 0. 7180 0. 7026 0. 6876 0. 6446 0. 5919 0.5439 0. 5002 10 0. 8203 0. 7441 0. 6920 0. 6756 0. 6595 0. 6139 0. 5584 0. 5083 0. 4632 20 0. 6730 0. 5537 0. 4789 0. 4564 0. 4350 0. 3769 0. 3118 0 . 2584 0. 2145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0. 9174 0.9091 0.9009 0. 8929 0. 8850 0. 8772 0. 8696 0.8333 0. 8000 0. 8417 0. 8264 0. 8116 0. 7972 0. 7831 0. 7695 0. 7561 0. 6944 0. 6400 0. 7722 0. 7513 0. 7312 0. 7118 0. 6931 0. 6750 0. 6575 0. 5787 0. 5120 0. 7084 0. 6830 0. 6587 0. 6355 0. 6133 0. 5921 0. 5718 0. 4823 0. 4096 0. 6499 0. 6209 0. 5935 0. 5674 0. 5428 0. 5194 0. 4972 0. 4019 0. 3277 0.5963 0.5645 0.5346 0. 5066 0. 4803 0. 4556 0. 4323 0. 3349 0. 2621 0. 5470 0. 5132 0. 4817 0. 4523 0. 4251 0. 3996 0. 3759 0. 2791 0. 2097 0. 5019 0. 4665 0.4339 0. 4039 0. 3762 0. 3506 0. 3269 0. 2326 0. 1678 0. 4604 0. 4241 0. 3909 0. 3606 0. 3329 0. 3075 0. 2843 0. 1938 0. 1342 0. 4224 0. 3855 0. 3522 0. 3220 0. 2946 0. 2697 0. 2472 0. 1615 0. 1074 20 0. 1784 0. 1486 0. 1240 0. 1037 0. 0868 0. 0728 0. 0611 0. 0261 0. 0115TABLE 11.4A Present Value of Annuity of $1 Periods* 2% 3% 3.75% 4% 4. 25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0. 9615 0. 9592 0.9524 0.9434 0.9346 0.9259 1. 9416 1.9135 1. 8929 1. 8861 1. 8794 1. 8594 1.8334 1. 8080 1.7833 2.8839 2. 8286 2. 7883 2. 7751 2. 7620 2.7232 2.6730 2. 6243 2.5771 3.8077 3. 7171 3.6514 3.6299 3. 6086 3.5460 3.4651 3.3872 3. 3121 4. 7135 4.5797 4.4833 4. 4518 4. 4207 4.3295 4. 2124 4. 1002 3.9927 5. 6014 5 . 4172 5. 2851 5. 2421 5. 1997 5.0757 4.9173 4.7665 4.6229 6.4720 6. 2303 6. 0579 6. 0021 5.9470 5.7864 5.5824 5. 3893 5. 2064 7. 3255 7. 0197 6. 8028 6.7327 6. 6638 6.4632 6. 2098 5.9713 5. 7466 8. 1622 7. 7861 7.5208 7.4353 7. 3513 7. 1078 6. 8017 6.5152 6. 2469 10 8. 9826 8.5302 8. 2128 8. 1109 8. 0109 7. 7217 7.3601 7.0236 6.7101 20 16. 3514 14.8775 13.8962 13.5903 13. 2944 12. 4622 11.4699 10.5940 9. 8181 Periods* 9% 10% 11% 12% 13% 14% 15% 20% 25% 0. 9174 0.9091 0.9009 0. 8929 0. 8550 0. 8772 0. 8696 0. 8333 0. 8000 1. 7591 1. 7355 1. 7125 1. 6901 1. 6681 1. 6467 1. 6257 1.5278 1.4400 2. 5313 2. 4869 2. 4437 2. 4018 2. 3612 2. 3216 2.2832 2.1065 1.9520 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2. 5887 2. 3616 3.8897 3.7908 3. 6959 3. 6048 3.5172 3.4331 3.3522 2.9906 2. 6893 1 0 0 UP WNP 4. 4859 4.3553 4.2305 4. 1114 3.9975 3.8887 3. 7845 3.3255 2.9514 5.0330 4. 8684 4. 7122 4.5638 4. 4226 4. 2883 4. 1604 3. 6046 3. 1611 5.5348 5.3349 5. 1461 4.9676 4. 7988 4.6389 4. 4873 3.8372 3.3289 5.9952 5.7590 5.5370 5. 3282 5. 1317 4.9464 4. 7716 4. 0310 3.4631 10 6. 4177 6. 1446 5.8892 5. 6502 5.4262 5. 2161 5. 0188 4. 1925 3.5705 20 9. 1285 8. 5136 7.9633 7. 4694 7.0248 6.6231 6. 2593 4. 8696 3.9539TABLE 11.1A Future Value of $1 Periods 2 3% 3.75% 4% 4. 25% 5% 6% 7% 8% 1. 0000 1.0000 1. 0000 1.0000 1.0000 1.0000 1. 0900 1. 0900 1. 0900 1. 0200 1. 0300 1. 0375 1. 0400 1. 0425 1. 0500 1. 0600 1. 0700 1. 0800 1. 0404 1. 0609 1. 0764 1. 0816 1. 0868 1. 1025 1. 1236 1. 1449 1. 1664 1. 0612 1. 0927 1. 1168 1. 1249 1. 1330 1. 1576 1. 1910 1. 2250 1. 2597 1. 0824 1. 1255 1. 1587 1.1699 1. 1811 1. 2155 1. 2625 1. 3108 1. 3605 1. 1041 1. 1593 1. 2021 1. 2167 1. 2313 1. 2763 1. 3382 1. 4026 1. 4693 1. 1262 1. 1941 1. 2472 1. 2653 1. 2837 1. 3401 1. 4185 1.5007 1.5869 1. 1487 1. 2299 1. 2939 1. 3159 1. 3382 1. 4071 1. 5036 1. 6058 1. 7138 1. 1717 1. 2668 1. 3425 1. 3686 1. 3951 1.4775 1. 5938 1. 7182 1. 8509 1. 1951 1. 3048 1. 3928 1.4233 1. 4544 1. 5513 1. 6895 1. 8385 1.9990 10 1. 2190 1.3439 1. 4450 1. 4802 1. 5162 1. 6289 1. 7906 1.9672 2. 1589 20 1. 4859 1. 8061 2. 0882 2. 1911 2. 2989 2.6533 3. 2071 3. 8697 4. 6610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1.0900 1. 0000 1. 0900 1. 1000 1. 1100 1. 1200 1. 1300 1. 1400 1. 1500 1. 2000 1. 2500 1. 1881 1. 2100 1. 2321 1. 2544 1. 2769 1. 2996 1. 3225 1. 4400 1. 5625 1. 2950 1. 3310 1. 3676 1. 4049 1. 4429 1. 4815 1. 5209 1. 7280 1.9531 1. 4116 1. 4641 1. 5181 1.5735 1. 6305 1. 6890 1. 7490 2. 0736 2. 4414 1.5386 1. 6105 1. 6851 1. 7623 1. 8424 1.9254 2. 0114 2. 4883 3. 0518 1. 6771 1. 7716 1. 8704 1.9738 2. 0820 2. 1950 2. 3131 2.9860 3. 8147 1. 8280 1.9487 2. 0762 2. 2107 2. 3526 2.5023 2.6600 3.5832 4. 7684 1.9926 2. 1436 2. 3045 2.4760 2. 6584 2. 8526 3.0590 4. 2998 5.9605 2. 1719 2.3579 2.5580 2.7731 3.0040 3. 2519 3. 5179 5. 1598 7. 4506 10 2.3674 2.5937 2. 8394 3.1058 3. 3946 3.7072 4. 0456 6. 1917 9. 3132 20 5.6044 6.7275 8. 0623 9. 6463 11. 5231 13.7435 16.3665 38.3376 86.73629 Balloons By Sunset (BBS) Is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various Information about the proposed Investment follows: (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1} Note: Use appropriate factor(s) from the tables provided. 03:40-52 Initial investment (for two hot air balloons) $ 411, 909 Useful life $ years Salvage value $ 51, 090 Annual net income generated $ 32,058 BBS's cost of capital Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback perlod. Note: Round your answer to 2 decimal places. 3. Net present value (NPV). Note: Do not round intermediate calculations. Negative amount should be Indicated by a minus sign. Round the final answer to nearest whole dollar 4. Recalculate the NPV assuming BBS's cost of capital is 11 percent. Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. 1. Accounting rate of return % 2. Payback period years 3. Net present value 4. Net present value assuming 11% cost of capital