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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

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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 (B85) is considering the purchase of two new hot air balloons so that it can expand its dosert sunset tours. Various information about the proposed investment follows: (Euture Value of S1. Present Vavie of S1, Future Valve. Annuitv alS1. Preace Value Anuity of sis Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used Aequired: Help B8S evaluate this project by calculating each of the foliowing 1. Accounting tate of return: Notei Round your anwwer 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. Nepative amount should be indicated by a minus sign. Hound the finat answer to nearest whole dollak. 4. Recalculate the NPV assuming BBS's cost of capatal is 12 percent Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar: Assume straight line depreciation method is used. Required: Required: Help BS evaluate this project by calculating each of the following: 1. 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: Oo 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 BaS's cost of copital is 12 percent. Note: Do not round intermediate calculations. Negative amognt should be indicated by a minus sign, Round the final answer to nearest whole dollar

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