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please show work thank you Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its
please show work thank you
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 St. Present Value of $1. Future Value Anulty of S1. Present Value Annuity of S1) (Use appropriate factor(s) from the tables provided) nem investment for two hot air balloon) Useful Salvage value Annual net incone generated S's cost of capital $347.000 7 years $ 53,000 31.924 12 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 BB's cost of capital is 15 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) 9.2013 years Accounting rate of retum 2 Payback period 1. Nel present value 4. Net procent value ning 15% cost of captal Step by Step Solution
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