{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T21:10:38-04:00", "answer_date": "2024-05-27 21:10:38", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1801525", "url": "\/study-help\/questions\/lindas-luxury-travel-llt-is-considering-the-purchase-of-two-1801525", "question_creation_date_js": "2024-05-27T21:10:38-04:00", "question_creation_date": "May 27, 2024 09:10 PM", "meta_title": "[Solved] Linda's Luxury Travel (LLT) is considerin | SolutionInn", "meta_description": "Answer of - Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the propos | SolutionInn", "meta_keywords": "linda,s,luxury,travel,llt,purchase,two,hummer,limousines,various,information,proposed", "question_title_h1": " 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", "question_title": " Linda's Luxury Travel (LLT) is considering the purchase of two Hummer", "question_title_for_js_snippet": "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 LLT's cost of capital $600,000 8 years $ 100,000 48,000 12 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 12 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 31 Calculate accounting rate of return Accounting Rate of Retum Required 4 12 ", "question_description": "\"image", "transcribed_text": "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 LLT's cost of capital $600,000 8 years $ 100,000 48,000 12% 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 12%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Calculate accounting rate of return. Accounting Rate of Retum Required 4 12 %", "related_book": { "title": "Cost Accounting A Managerial Emphasis", "isbn": "978-0132960649, 132960648, 132109174, 978-0132109178", "edition": "14th Edition", "authors": "Charles T. Horngren, Srikant M.Dater, George Foster, Madhav", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/58.jpg", "uri": "\/textbooks\/cost-accounting-a-managerial-emphasis-14th-edition-58", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8562094599", "uri": "\/textbooks\/quadratic-equations-1st-edition-979-8562094599-173557", "name": "Quadratic Equations", "edition": "1st Edition" }, "question_posted": "2024-05-27 21:10:38", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/as-you-might-imagine-the-chart-of-accounts-for-a", "description": "As you might imagine, the chart of accounts for a manufacturing firm would be different from that of a service firm. 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