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 %