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need 1-4 Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Assume straight line depreciation
need 1-4
Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: 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, (Future Value of \$1. Present Value of \$1. Euture Value Annuily of S1. Present Valie Aninuity of S1.) Note: Use appropriate factor(s) from the tables provided. 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. Calculate accounting rate of return. Note: Round your answer to 1 decimal place Step by Step Solution
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