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Linda's Lumoury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows Toituminvestuot (Timo) $1,080,000 Useful lite 10

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Linda's Lumoury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows Toituminvestuot (Timo) $1,080,000 Useful lite 10 years Salvage value $ 120,000 Annual net income generated 95,040 LLT's.cost of capital 15 Assume straight line depreciation method is used Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your percentage answer to 1 decimal place.) Accounting Rot Rotun 96 2. Payback period. (Round your answer to 2 decimal places.) Payback Period Years Book 4 3. Net present value. (Future Value of $1. Present Value of $1. Future Volue Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round Intermediate calculations. Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) Table or Calculator Function Book Cash Outflow (Beginning of the Year) Print % Present Value Table or Calculator Function Cash Intlow (for Next 10 years) no = % Table Factor Present Value Table of Calculator Function Cash Intlow (for 10th Year) n= i= % Present Value Table or Calculator Function: Cash Inflow (for Next 10 Years) na 1 = % Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n = i = % Table Factor Present Value Total Net Present Value

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