Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so...
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Accounting
Balloons By Sunset (BBS) 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: (Future Value of \$1, Present Value of \$1. Euture Value Annulty of \$1, Prerent Value Annuify of S1.) Note: Use appropriote foctor(s) from the tables provided. Assume straight line depreciation method is used. Roquired: 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 places. 3. Net present vaiue (NPV). Note: 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 14 percent. 1. Accounting rate of return. Note: Round your answer to 2 decimal places. 2. Payback perlod, Note: Round your answer to 2 decimal places. 3. Net present value (NPV). Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the fina nearest whole doliar. 4. Recalculate the NPV assuming BBS's cost of capital is 14 percent. Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the fina nearest whole dollar. TABLE 11.2A Present Value of $1 TABLE 11.1A Future Value of $1 TABLE 11.3A Future Value of an Annuity of $1 TABLE 11.4A Present Value of Annuity of $1






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