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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
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 incone generated LUT' cost of capital $1,500,000 10 years $ 140,000 $ 142,500 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
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