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PA 1 1 - 1 ( Algo ) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return [ LO

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PA11-1(Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return [LO 11-1,11-2,11-3,11-4]
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 $1.)
Note: Use appropriate factor(s) from the tables provided.Assume straight line depreciation method is used.Required:Help BBS evaluate this project by calculating each of the following:
Accounting rate of return.
Note: Round your answer to 2 decimal places.
2. Payback period.
Note: Round your answer to 2 decimal places.
3. Net present value (NPV).
Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.
4. Recalculate the NPV assuming BBS's cost of capital is 13 percent
Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.
\table[[1. Accounting rate of return,,11.30,],[2. Payback period,,5.00,years],[3. Net present value,$,49,438,],[4. Net present value assuming 13% cost of capital,$,(768),]] Answers 1,4 are incorrect. Please help. Thank you.
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