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just need help with required 3 and 4. Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it
just need help with required 3 and 4.
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Vorious Information about the proposed investment follows. Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Volue Annulty of $1 ) Note: Use appropriate factor(s) from the tables provided. Assume stralgit line depreciation method is used. Required: Help BaS 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 BBS's cost of capital is 14 percent Note: Do not round intermedlate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar Step by Step Solution
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