Return to questie 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 $1. Present Value of $1. Future Value Annuity of Si. Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.) Initial investment (for two hot air balloons) Salvage value Annual net income generated BUS's cost of capital $ 476,000 8 years $ 52,000 44,268 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 12 percent (Do not round intermediate calculations. Negative amount should be indicated by o minus sign. Round the final answer to nearest whole dollar) Rrey 1 of 2 : Next > earch 0 to) Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to 1 's cost of capital 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 12 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) Answer is complete but not entirely correct. 1 2 3. Accounting rate of return Payback period Net present value Net present value assuming 12% cost of capital 9.30 489 years 88.456 28.291 s 4 $ Prey 1 of 2 !!! Next > > to search O PH