4 Check my work 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) 4 points 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 Volue of $1. Present Value LS1. Euture Value Annuity of S1. Present Value Annuity of S1) (Use appropriate factor(s) from the tables provided.) eBook Teine References Initial Investment (for two hot air balloons) Useful life Salvage value Annual net income generated S's cost of capital $ 109,000 7 years $ 57,000 24,411 105 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 BBS's 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.) 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 BBS's 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 dollor.) 5.11 years 1. Accounting rate of return 2. Payback period 3. Net present value 4. Net present value assuming 13% cost of capital 4 Initial investment (for two hot air balloons) Useful life Salvage value Annual net income generated BBS's cost of capital $ 309,000 7 years $ 57,000 24,411 10%