Lindas Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows:

Initial investment (2 limos)	$	780,000
Useful life		10	years
Salvage value	$	100,000
Annual net income generated		64,740
LLTs cost of capital		15	%

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 ( Round your answer to 2 decimal places)

3.	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. Round your "Present Values" to the nearest whole dollar amount.)

TABLE 11.2A Present Value of $1 0.9639 0.9290 0.8954 0.8631 0.9259 0.8573 0.7938 0.7350 0.9709 0.9426 0.9592 0.9201 0.8826 0.8466 0.8121 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.9804 0.9346 0.8734 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 2 3 0.9423 0.9238 0.9057 0.8880 0.8885 0.8626 0.8375 0.8900 0.8396 0.7921 0.7473 0.7629 0.6663 0.6227 0.5820 0.5439 0.5083 0.2584 0.6302 0.5835 0.5403 0.5002 0.6651 0.6274 0.8535 0.8368 0.8203 0.6730 0.7894 0.7664 8 0.7449 0.6768 0.6876 0.6595 10 20 0.6920 0.4789 0.3769 0.8772 0.7695 0.6750 0.5921 0.9009 0.8000 0.9091 0.8264 0.8929 0.7972 0.8696 0.8333 0.6944 0.4823 0.3349 3 0.6931 0.7722 0.7084 0.6499 0.6575 0.6587 0.5935 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.6830 0.6209 0.5645 0.4096 0.3277 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.5428 0.4803 0.3762 0.2946 0.5470 0.3996 0.2097 0.4339 0.3909 0.3522 8 0.4665 0.2697 0.0728 0.4224 0.3855 20 0.0868 0.0261