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Please help me understand I cannot figure this one out. Need help finding Net Present value and net present value assuming 13% cost of capital.
Please help me understand I cannot figure this one out. Need help finding Net Present value and net present value assuming 13% cost of capital. Please dont just give me the answer, show me all steps so I can understand better. Thanks so much. (: 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 S1, Present Value of \$1. Euture Volue Annulty 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: 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: 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. \begin{tabular}{|l|r|l|} \hline 1. Accounting rate of return & 9.50 & % \\ \hline 2. Payback period & 4.30 & years \\ \hline 3. Net present value & & \\ \hline 4. Net present value assuming 13% cost of capital & & \\ \hline \end{tabular}
Need help finding Net Present value and net present value assuming 13% cost of capital.
Please dont just give me the answer, show me all steps so I can understand better.
Thanks so much. (:
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