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Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows. Assume straight line depreclation method is
Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows. Assume straight line depreclation method is used. Required: Help LIT evaluate this project by calculoting each of the following 1. Accounting rate of return 2. Payback period. 3. Net present value. (Future Value of S1. Present Volue of S1. Euture Value Aninusy of S1, Present Value.Annuity. ot S1.) Note: Use appropriste factor(s) from the tables provided. 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. Calculate accounting rate of return. Note: Found your answer to 1 decimal place. Complete this question by entering your answers in the tabs below. Calculate payback period. Note: Round your answer to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate net present value. Note: Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Without making any calculations, determine whether the IRR is more or less than 14%
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