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  1. business
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  3. information about the proposed investment follows:

information about the proposed investment follows: (Future Value of $1, Present Value of $1, Future...

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Accounting

information about the proposed investment follows: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Pres Annuity of $1.)
Note: Use appropriate factor(s) from the tables provided.
Initial investment (for two hot air balloons)
Useful life
Salvage value
Annual net income generated
BBS's cost of capital
$421,000
10 years
$41,000
$34,101
9%
Assume straight line depreciation method is used.
Required:
Help BBS evaluate this project by calculating each of the following:
Accounting rate of return.
Note: Round your answer to 2 decimal places.
Payback period.
Note: Round your answer to 2 decimal places.
Net present value (NPV).
Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final nearest whole dollar.
Recalculate the NPV assuming BBS's cost of capital is 12 percent.
Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the fina nearest whole dollar.
\table[[1. Accounting rate of return,,8.100,%
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