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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
PAAlgo Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return LO
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 $ Present Value of $ Future Value Annuity of $ Present Value Annuity of $
Note: Use appropriate factors 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 decimal places.
Payback period.
Note: Round your answer to decimal places.
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.
Recalculate the NPV assuming BBSs cost of capital is 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 Accounting rate of return,, Payback period,,years Net present value,$ Net present value assuming cost of capital,$ Answers are incorrect. Please help. Thank you.
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