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Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 1 mon) Useful

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Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 1 mon) Useful life Salvage value Annual net income generated TUT' cost of capital $ 720,000 10 years $ 100,000 $ 59,040 141 Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return 2. Payback period 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 14% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return 9 Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines, Various information about the proposed investment follows: Initial Investment (2 limos) Useful life Salvage value Annual net income generated L's cost of capital 5 720,000 10 years $ 100,000 $ 59,040 141 Assume straight line depreciation method is used, Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return 2. Payback period. 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 14% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate payback period. (Round your answer to 2 decimal places.) Payback Porod years Table or Calculator Function: Cash Outflow (Beginning of the Year) n= i = % Present Value Table or Calculator Function: Cash Inflow (for Next 10 Years) n = i = % Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n= % Table Factor Present Value Total Net Present Value Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows: Initial investment (2 limon) Useful Lito Salvage value Annual net income generated LUT' cost of capital $ 720,000 10 years $ 100,000 $ 59,040 140 Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 14% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Without making any calculations, determine whether the IRR is more or less than 14%. IRR

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