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Balioons By Sunset (BBS) is considering the purchase of two new thot air balloons so...

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Accounting

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Balioons By Sunset (BBS) is considering the purchase of two new thot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of $1. Present Valuc of st. Future Value Annuty of $1. Present. Value Anouity of 511 Note: Use appropriate factor(s) from the tables provided. Assume straight line depreciation method is used Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback perlod. Note: Round your answer to 2 decimal ploces. 3. Net present value (NPV) Note: Do not round intermediate calculotions. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollor. 4. Recalculate the NPV assuming BeS's cost of capital is 14 percent Note: Do not round intermediate calculations. Negotive omount should be indicated by a minus sign. Round the final answer to nearest whole dollar

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