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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 times) Uuetol Hiro

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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 times) Uuetol Hiro Salvage value Annual net income generated LITE cost of capital $1,620.000 10 years $ 140,000 $157,140 150 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 15%

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