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 $1,800,000 10 years $ 140,000 $ 180,000 155 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%. 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.) Show less Table or Calculator Function: Cash Outflow (Beginning of the Year) Present Value of $1 $ no (1,800,000) 0 15% (1,800,000) Present Value $ Table or Calculator Function: Cash Inflow (for Next 10 Years) Present Value Annuity of $1 $ (320,000) 10 n = 1 = 15% Table Factor Present Value Present Value of $1 Table or Calculator Function: Cash Inflow (for 10th Year) ne 10 15% 5.0188 Table Factor Present Value Total Net Present Value Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment 12 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,800,000 10 years $ 140,000 $ 180,000 150 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 Table or Calculator Function Cash inflow (for 10th Year) n 10 15% 5.0188 Table Factor Present Value Total Net Present Value