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 $ $1,680,000 10 years 140,000 Annual net income generated $ 164,640 15% LLT's cost of capital 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%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return % Required Required 2 > Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investmen follows: Initial investment (2 limos) Useful life Salvage value $1,680,000 10 years. $ 140,000 Annual net income generated $ 164,640 15% LLT's cost of capital 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%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate payback period. (Round your answer to 2 decimal places.) Payback Period years 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.) Table or Calculator Function: Cash Outflow (Beginning of the Year) Present Value n = i= Present Value of $1 Present Value Annuity of $1 Table or Calculator Function: Cash Inflow (for Next 10 Years) $ n= i = Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n = Table Factor Present Value Total Net Present Value Present Value of $1 0 % 304,640 10 15% 10 15% Show less A 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 $1,680,000 10 years $ 140,000 Annual net income generated $ 164,640 LLT's cost of capital 15% 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%. 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 15%. IRR