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I need help with part 4. Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand
I need help with part 4.
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. Assume straight line depreclation 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 period. 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 B8S's cost of capital is 13 percent. Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. Note: Do not round intermediate calculations. Negative amount should be indi nearest whole dollar. 4. Recalculate the NPV assuming BBS's cost of capital is 13 percent. Note: Do not round intermediate calculations. Negative amount should be indi nearest whole dollar. TABLE 11.1A Future Value of $1 TABLE 11.4A Present Value of Annuity of $1 TABLE 11.3A Future Value of an Annuity of $1 TABLE 11.2A Present Value of $1 Step by Step Solution
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