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Linda's Luxury Travel is considering the purchase of two Hummer limousines. Initial investment (2 limos) $1,800,000 Useful life10 years Salvage value $140,000 Annual net income
Linda's Luxury Travel is considering the purchase of two Hummer limousines.
Initial investment (2 limos) $1,800,000 Useful life10 years Salvage value $140,000 Annual net income generated180,000 LLT's cost of capital15%
What would the accounting rate of return be?
What would be thepayback period?
What would the net present value be when the Future Value $1, Present Value $1, Future Value Annuity $1, Present Value Annuity $1.
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