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Help! Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expend its desert sunset tours. Various
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Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expend its desert sunset tours. Various Information about the proposed investment follows: (Future Value of \$1. Present Volue of \$1, Euture Vaicie Arinuity of \$1. Present Yalue Annuity of ST) (Use appropriate factor(s) from the tables provided.) Assume straight line depreciation method is used Required: Help 885 evaluate this project by calculating each of the following 1. Accounting rate of return. (Round your answer to 2 decimal ptoces.) 2. Poybock period. (Round your answer to 2 decimal pleces.) 3. Net present value (NPV) (Do not round intermediote caiculotions. Negative amount should be indicated by a minus algn. Round the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of copital is 12 percent. (Do not round intermediate calculations. Negative emount. should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Step by Step Solution
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