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Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows:

Initial investment	$ 250,000
Useful life	10	years
Salvage value	$ 25,000
Annual net income generated	$ 5,600
FCA's cost of capital	8%

Assume straight line depreciation method is used.

Help FCA evaluate this project by calculating each of the following:

Required:

1. Accounting rate of return.

2. Payback period

3. Net present value (NPV). (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)

4. Recalculate FCA's NPV assuming the cost of capital is 3 percent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)

Note: Round your answer to 2 decimal places.