Normal No Spacing Heading 1 Head Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows: Initial investment (2 limos) $1,800,000 Useful life 10 years Salvage value $ 140,000 Annual net income generated$ 180,000 LLT's 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. 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 15%. Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return % Calculate payback period. (Round your answer to 2 decimal places.) Payback Period years Calculate net present value. (Future Value of sl. Present Value of S1. Future Value Annuity of S1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Cash Outflows and negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) Show less Table or Calculator Function: Cash Outflow (Beginning of the Year) 15 % MacBook Pro Mailings Review View es AO ALI AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbcc No Spacing Heading 1 Heading Normal Show less Table or Calculator Function: Cash Outflow (Beginning of the Year) n = i= 151% Present Value $1,800,000 Present Value Annuity of $1 Table or Calculator Function: Cash Inflow (for Next 10 Years) Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) Table Factor Present Value Total Net Present Value Without making any calculations, determine whether the IRR is more or less than 15%. IRR