[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 wingwalking demonstrations and aerial tour business. Various information about the proposed investment follows:

Initial investment S170,000

Useful life 10 years

Salvage value $20,000

Annual net income generated $4,000

FCA's cost of capital 7%

Assume straight line depreciation method is used.

Required:

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

Accounting rate of return. (Round your answer to 2 decimal places.): =_________%

Payback period. (Round your answer to 2 decimal places.) : =__________Years

Net present value (NPV). (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.) : = _______

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.): = ______