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NEED THIS ANSWERED ASAP. LESS THAN 1 hours Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it
NEED THIS ANSWERED ASAP. LESS THAN 1 hours
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of $1. Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $11 Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback period Note: Round your answer to 2 decimal places. 3. Net present value (NPV). Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar. 4. Recaiculate the NPV assuming BBS's cost of capital is 14 percent. Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar Step by Step Solution
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