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Lindas Luxury Travel (LLT is considering the purchase of two Hummer limousines Various information about the proposed investment follows: Intial investment limos) $1,500,000 140.000 Salvage

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Lindas Luxury Travel (LLT is considering the purchase of two Hummer limousines Various information about the proposed investment follows: Intial investment limos) $1,500,000 140.000 Salvage value Annual net income generated 140.700 LLTs cost of capital Assume straight line depreciation method is used. Required. evaluate this project by caloulating each ofthe foloving 1. Accounting rate of return. 2 Payback period. Round your answer to 2 decimal places) 5.35 Years 3. Net present value (Eutrevalue oM31 Present Ma ots1 Euture value Amutwofs1, Present appropriate tactors from the tables provided Round your present ues to the nearest whole amount) Table or Calculator Funotion Cash ourtow Beginning of the Table Calculator Funoton. Cash innow (for Next 10 Years) Table Factor Cash Infow (for 10th Year) Total Net Present vakue

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