S Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,380,000 Required 1 $ 130,000 $ 128,340 Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: Required 2 10 years 1. Accounting rate of return. 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 15%. 15% Complete this question by entering your answers in the tabs below. Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return %

Linda's Luxury Travel (LLT) is considering the purchate of two Hummer limousines, Vanious information about the proposed investment follows: Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following 1. Accounting rate of return. 2. Paybock periodi 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 15%. Complete this question by entering your answers in the tabs below. Calculate accounting rate of return. (Round your answer to 1 decimal place.)