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O You received partial credit in the previous attempt. 1 Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so

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O You received partial credit in the previous attempt. 1 Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand it information about the proposed investment follows: (Future Value of $1. Present Value of $1. Future Value Annuity of $1) (Use appropriate factor(s) from the tables provided.) pints Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated BBS's cost of capital $ 415,000 9 years $ 46,000 34,030 7% eBook Print References Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 2 decimal places.) 2. Payback period. (Round your answer to 2 decimal places.) 3. Net present value (NPV). (Do not round intermediate calculations. Negative amount should be indicate the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capital is 10 percent. (Do not round intermediate calculatio should be indicated by a minus sign. Round the final answer to nearest whole dollar.) % 1. Accounting rate of return 2. Payback period 3. Net present value 4. Net present value assuming 10% cost of capital 5.53 years MC Periods 2% 3% 3.75% 4.25% 5% 7% 8% 1 0.9804 0970909639 0.9615 09592 0.9524 0.9434 0.9346 0.9259 2 3 09612 09426 0.9290 0 9246 09201 09070 0 8900 08734 08573 0.9423 0.9151 0.8954 0.8890 08826 08638 08396 08163 07938 0.9238 0.8885 0.8631 0.8548 0.8466 0.8227 07921 07629 0.7350 4 5 0.9057 0.8626 08319 0.8219 0.812107835 07473 07130 0.6806 6 08880 0.8375 0.8018 07903 07790 0.7462 07050 06663 06302 7 0.8706 0.8131 07728 07599 07473 07107 06651 06227 0.5835 8 08535 07894 07449 07307 07168 06768 06274 0.5820 05403 9 08368 07664 07180 07025 06876 06446 0.5919 05439 0.5002 10 08203 07441 06920 0.6756 06595 06139 0558405083 04632 20 06730 05537 0.4789 0.4564 0.4350 03769 03118 0.2584 02145 Periods 0% 10% 11% 12% 13N 14% 15% 20% 25% 1 2 3 4 09174 09091 09009 0.8929 08850 08772 08696 0.8333 08000 08417 08264 08116 07972 07831 07696 0756106944 0.6400 07722 07513 07312 07118 06931 06750 06575 05787 0.5120 07084 0683006587 06355 06133 0.5921 05718 0.4823 0.4096 06499 06209 0:5935 05674 0.5428 0.5194 04972 0.4019 0.3277 05963 0.5645 05346 0.5066 0.4803 04556 0.4323 03349 02621 05470 05132 0.4817 0.4523 04251 03996 03759 0 2791 0.2097 05019 04665 0.4339 04039 03762 03506 0.3269 02326 01678 5 6 7 8 9 10 0.4604 04241 03909 03606 03329 03075 02843 01938 01342 04224 03855 03522 03220 02946 02697 0.2472 01615 01074 0.1784 01486 01240 0.1037 00868 00728 00611 00261 00115 20

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