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Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Assume straight line depreciation method is
Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Assume straight line depreciation method is used. Help LLT evaluate this project by calculating each of the following: Accounting rate of return. (Round your percentage answer to 1 decimal place.) Payback period. (Round your answer to 2 decimal places.) Net present value. (Future Value of $1, Present Value of $1, Future Value 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.) Without making any calculations, determine whether the IRR is more or less than 13%. Greater than 13% Less than 13%
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