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 $1,440,000 10 years $ 130,000 $ 135,360 145 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 accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return % Required Required 2 > Linda Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows TRIBAL Investment (2 ms) Useful life Balvage value Annual set the yenerated LLT' cost of capital 01.440,000 $ 130,000 $ 135,360 1 year 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 Calculate payback period. (Round your answer to 2 decimal places) Payback Panod CCT2 X Question 1- CH 11 Exercises - X Shopping Cart Tommy Hilfige X The Fr heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A Bes Saved Annuity of $1.) (Use appropriate factor(s) from the tables provided. Cash Outrows and indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amou Table or Calculator Function: Cash Outflow (Beginning of the Year) na i = % Present Value 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= i = % Table Factor Present Value Total Net Present Value Check my work Annual net income generated LUT' cost of capital $ 135,360 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 Without making any calculations, determine whether the IRR is more or less than 14% IRR Linda Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows TRIBAL Investment (2 ms) Useful life Balvage value Annual set the yenerated LLT' cost of capital 01.440,000 $ 130,000 $ 135,360 1 year 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 Calculate payback period. (Round your answer to 2 decimal places) Payback Panod CCT2 X Question 1- CH 11 Exercises - X Shopping Cart Tommy Hilfige X The Fr heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A Bes Saved Annuity of $1.) (Use appropriate factor(s) from the tables provided. Cash Outrows and indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amou Table or Calculator Function: Cash Outflow (Beginning of the Year) na i = % Present Value 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= i = % Table Factor Present Value Total Net Present Value Check my work Annual net income generated LUT' cost of capital $ 135,360 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 Without making any calculations, determine whether the IRR is more or less than 14% IRR
