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

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Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment Hollows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $ 840,000 10 years $ 120,000 $ 70,560 14% 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 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. Cash Outflows and negative amounts should be Indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) Show less Present Value of $1 Table or Calculator Function: Cash Outflow (Beginning of the Year) n = Il 14% Present Value $ 840,000 Table or Calculator Function: Cash Inflow (for Next 10 Years) n= i = 14% Table Factor Present Value Present Value of $1 Table or Calculator Function: Cash Inflow (for 10th Year) n = i= 141% 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 Hollows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $ 840,000 10 years $ 120,000 $ 78,568 144 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 life 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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