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 (Euture Value of $1. Present Value of S1. Future Value Annuity of S1. Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided) Initial investment (for two not alr balloons) Useful life Salvage value Annual net income generated BES's cost of capital $ 307.000 7 years $ 55,000 28, 244 10% 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 indicated by a minus sign. Round the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming Bess cost of capital is 13 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) 9201 years 1 Accounting rate of return 2 Payback period 3. Net present value Net present value assuming 13% cost of capital