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Here is the red text that is cut off: (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount should be

image text in transcribedHere is the red text that is cut off: (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.)

valuc: 3.00 polnts PA11-1 Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return [LO 11-1, 11-2,1 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: Initial investment (for two hot air balloons) 416,000 Useful life Salvage value Annual net income generated BBS's cost of capital 7 years $ 59,000 38,688 10% Assume straight line depreciation method is used. Required Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 1 declmal place.) unting Rate of Return 2. Payback period. (Round your answer to 2 decimal places.) Period Years 3. 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. Do n whole dollar.) et Present Value 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use approprlate fa Round the final answer to nearest whole dollar.) et Present Value

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