Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., 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 Useful life Salvage value Annual net income generated FCA's cost of capital $ 160,000 10 years 20,000 $ 3,800 Assume straight line depreciation method is used. Required: Help FCA evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., 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 Useful life Salvage value Annual net income generated FCA'S cost of capital $ 160,000 10 years 20,000 $ 3,800 109 Assume straight line depreciation method is used. 2. Help FCA evaluate this project by calculating each of the following: Payback period. (Round your answer to 2 decimal places.) Payback Period years Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., 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 Useful life Salvage value Annual net income generated FCA's cost of capital $ 160,000 10 years 20,000 $ 3,800 124 Assume straight line depreciation method is used. 3. Help FCA evaluate this project by calculating each of the following: Net present value (NPV) (Future Value of $1. Present Value of $1. Future Value Annuity of 51. Present Value Annuity of $1.) (Use appropriate factors) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) Net Present Value Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., 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 Useful life Salvage value Annual net income generated FCA's cost of capital $ 160,000 10 years 20,000 $ 3,800 104 Assume straight line depreciation method is used. 4. Help FCA evaluate this project by calculating each of the following: 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.) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar amount.) Net Present Value
