PA11-1 Calculating Accounting Rate of Return, Payback Period. Net Present Value, Estimating Internal Rate of Return(LO 11-1, 11-2, 11-3, 11-4] Ballons 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 ollows: Initial investment (for two hot air balloons) 355,000 Useful ife Salvage value Annual net income generated 88S's cost of capital years $ 54,000 32,305 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 1 decimal place.) 2. Payback period. (Round your answer to 2 decimal places.) ears