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 $1,020,000 10 years $ 120,000 $ 88,740 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%. Required 1 Required 2 Required 3 Required 4 Calculate net present value. (Future Value of $1, Present Value of Si, 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.) Show less Table or Calculator Function: Present Value of $1 Cash Outflow (Beginning of the Year) $ (1,020,000) n = 0 i = Present Value $ 14 % (1,020,000) Table or Calculator Function: Cash Inflow (for Next 10 Years) Present Value Annuity of $1 n 10 i II 14% Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n = 11 % Table Factor Present Value Total Net Present Value Required 1 Required 2 Required 3 Required 4 Without making any calculations, determine whether the IRR is more or less than 14%. IRR