Answer Happy

CHI 10 1 points book Pres Hele Mc Grow Hi Seved Help Balloons By Sunset (885) 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: (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided.) Initial investment (for two hot air balloons) Useful life 1470,000 Salvage value Annual net income generated $50,000 35,720 800's cost of capital 31 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 11 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) 1. Accounting rain of re 2. Payback period years < Prov 10 of 10 Next > 10 years Save & Submit Check my work