O Required Information [The following information applies to the questions displayed below) Falcon Crest Aces (FCA), Inc, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerlal tour business. Various Information about the proposed Investment follows: Initial investment Useful life Salvago value Annaal net income generated TCN cost of capital $ 260,000 10 your 25,000 5,800 70 Assume straight line depreciation method is used. Required: Help FCA evaluate this project by calculating each of the following: 1. Accounting rate of return (Round your answer to 2 decimal places.) Accounting Rate of Return 2.23% O Required Information The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc. is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various Information about the proposed investment follows: Initial Investment Useful life Salvage value Annual net income generated TCA' cost of capital $ 260,000 10 years 25,000 $ 5,800 76 Assume straight line depreciation method is used 2. Help FCA evaluate this project by calculating each of the following: Payback period. (Round your answer to 2 decimal places.) Payback Porod 8.87 years D Required Information The following information applies to the questions displayed below) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed Investment follows: Instis Investment Useful life Salvago value Annual net income generated PCA's cost of capital $ 260,000 S 10 years 25,000 5,800 90 Assume straight line depreciation method is used. 3. Help FCA evaluate this project by calculating each of the following: Net present value (NPV). (Future Value of S1, Present youe of $1, Future Value Annulty of $1. Present Value Annulty of $1) (Use appropriate factor(s) from the tables provided. Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Not Present Value Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and serial tour business. Various Information about the proposed investment follows: Initial investment $260.000 Useful life 10 years Salvage value 25,000 Annual set income generated 55,800 TCA'S cost of capital 70 Assume straight line depreciation method is used 4. Help FCA evaluate this project by calculating each of the following: Recalculate FCAS NPV assuming the cost of capitals 3 percont. (Euture Value of $1. Prosent Value of $1. Future Value Annuity of $1. Prescot Value Annuity of S1) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar amount.) Net Present Value
