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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 investinent (2 11mos) Useful life

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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 investinent (2 11mos) Useful life Salvage value Annual net income generated LLT's cost of capital 61,080,000 10 years 120,000 95,040 158 Assame 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

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