Lab 11, 2 large questions. Questions are in the papers.

11117r2015 Lab Chaplar 11 Whitecotton; Managerla! Accounting Ze: ACCT Rosa Arnado' 2302 Fall 2015 Syn 34239014 Lab Chapter fi lns.m:t;cns in 1 pm lnitial investment $300,000 Useful life 5 years Salvage value $100,000 Assume straight line depreciation method is used. Required: 1 Calculate the accounting rate of return for Harwell. {Accounting Rate of Retum % 5 i 2. Calculate the payback period for Harwell.(Round ybur answer to 2 decimal place.) iPaybackPmd' .. Hints References eBook & Resources Ml 02015 McGuw-Hm Education. All nghfs reserved.Whitecotton; Managerial Accounting 2e: ACCT Rosa Am; 2302 Fall 2015 Syn 34239-014 instruct: LabCheptiern 2 rem Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: initial investment (2 limos) $ 600,000 Useful life 8 years Salvage value $ 100,000 Annual net income generated 48,000 LLT's cost of capital 12 % Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. rum. w.--w..w...mmm -N.--......M""e..WM.-+--w- 4 Accounting Rate Of Return :% ....,.. ..... Wu Mag"... ya... i 2. Payback period. (Round your answer to 2 decimal places.) {Payback Period .' gvears is. . We... ...... ...t.,..,..w....s4.-..4.-- r....-.....a."..m.w... uJ 3. Net present value. (Futugg Value gt il, Pr nt . f1, F , . 4 .) (Use appropriate factofls) from the tables provnded.)17/'2015 . Lab Chapter 11 e i' [fli E'ic'diir' EUAil' . .. ,.x . . me," e......, n.-. Kw... ,.. .. in, -.4,.e..i ..- gcs'h Ohfiiow (Begihning Bi'ir'i'Q'B ' ' fi ir... ...... ...,..... ! l : i 'z i > ' , . fl, , . v ' : Mug"...mum Tabie or Caicuiator Function: jr -MMMWMMW*"M Cash lnfiow (for Next 8 Years)w Q whwmwwwy' "We, ..... m., .....,.... m................... "we" nh... fl! n=$ LWM* my MW..." "meammmwwwmwgmq = I ' (yo -- MWWM "umm-ann w-A-m ---"w Tabie Factor 3 ' r , , 5 mw . Present Value ; C 'H 'W'W'm'm 'w'm" "MM"M Wflmm WTWWWWMWW'W'"WK "Mi 3 gm-mmwwm..www Cash infiow (for 8th Year) ? i i i ,. W- -M.,....,.,.4. ,. uv..w.m-mm..m ANM-w-WWWWM gTabie Factor i, 7-MMW-MWWW.M "umm MW" ; Mw. 1 i i LWWWWWWMMM . 2 i 'Presen; Vmaiue up- ii i. i ii Mm.-- ........... Totel Net Present Value 4. Without making any calculations. determine whether the IRR is more or less than 12%. C) Less than 12% C) Greater than 12% References '. eBook& Resources