PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate...
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PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return [LO 11-1, 11-2, 11-3, 11-4] 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 Valuc of \$1. Ptesent Value of \$1. Future Value Annuity or \$1. Pregent Value Annuity of 51. Note: Use eppropriate foctor(s) from the tables brovided Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting tate 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 colculations. Negotive amount should be indicated by o minus sign. Round the final answer to nearest whole dollor. 4. Recalculate the NPV assuming B8S's cost of capital is 13 percent Note: Do not round intermediate calculotions. Negotive omount should be indicoted by a minus sign. Round the final answer to nearest whole dollor. PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating Internal Rate of Return [LO 11-1, 11-2, 11-3, 11-4] 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 Valuc of \$1. Ptesent Value of \$1. Future Value Annuity or \$1. Pregent Value Annuity of 51. Note: Use eppropriate foctor(s) from the tables brovided Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting tate 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 colculations. Negotive amount should be indicated by o minus sign. Round the final answer to nearest whole dollor. 4. Recalculate the NPV assuming B8S's cost of capital is 13 percent Note: Do not round intermediate calculotions. Negotive omount should be indicoted by a minus sign. Round the final answer to nearest whole dollor


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