Seved 7 Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows 56 Skipped Initial Investment (2 Timos) Useful life Salvage value Annual net incone generated LLT's cost of capital $1,380,000 10 years $ 130,000 $ 128,340 15% ebook Hint Assume straight line depreciation method is used Required: Help ULT evaluate this project by calculating each of the following: 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% Print Complete this question by entering your answers in the tabs below. Frequired 1 Required 2 Required a Required 4 Calculate accounting rate of return, (Hound your answer to i decimal place) Accounting Rate of Retorn Required 2 > N apter 11 Homework 7 Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines Various information about the proposed investment follows: 36 Onts Sideped Initial investment (2 mos) Useful life Salvage value Annual net Income generated LLT's cost of capital $1,380,000 10 years $ 130,000 5128, 340 15% look Assume straight line depreciation method is used Hint Required: Help LLT evaluate this project by calculating each of the following: 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% AK Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Required 4 Calculate payback period (Round your answer to 2 decimal places) Paytac Period Chapter 11 Homework Sawd 7 Required Required 2 Required Required 4 136 points Calculate net present value. (Future Value of $1. Present Value of $i, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Cash Outflows and negative amounts should be indicated by a minus sign Round your "Present Values to the nearest whole dollar amount Show less Book Table or Calculator Function Cash Outflow (Beginning of the Year) 1- Present Value As Table of Calculator Function Cash Inflow (for Next 10 years) Print Table Factor Present Valo References Table or Calculator Function Cash Intlow (for Tom Year) Table Factor Present Value Total Net Presenta Chapter 11 Homework Save 7 Initial Investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,380,000 10 years $ 130,000 $ 128,340 15% 136 points Skloped eBook Assume straight line depreciation method is used. Required: Help Lut evaluate this project by calculating each of the following: 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% Hint ASH Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required Required* without making any calculations, determine whether the IRR in more or less than 15% Heferences RR
