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In: AccountingPA11-1 Calculating Accounting Rate of Return, Payback Period,Net Present Value, Estimating Internal Rate of Return...PA11-1 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 newhot air balloons so that it can expand its desert sunset tours.Various information about the proposed investmentfollows: Initial investment (for two hot air balloons)$529,000Useful life9yearsSalvage value$43,000Annual net income generated48,139BBS’s cost of capital9%Assume straight line depreciation method is used. Required:Help BBS evaluate this project by calculating each of thefollowing: 1. Accounting rate of return. (Round youranswer to 1 decimal place.) 2. Payback period. (Round your answer to 2decimal places.) 3. Net present value (NPV). (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present ValueAnnuity of $1.) (Use appropriate factor(s) from the tablesprovided. Do not round intermediate calculations. Negative amountshould be indicated by a minus sign. Round the final answer tonearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost ofcapital is 12 percent. (Future Value of $1, Present Value of $1,Future Value Annuity of $1, Present Value Annuity of $1.)(Use appropriate factor(s) from the tables provided. Do notround intermediate calculations. Negative amount should beindicated by a minus sign. Round the final answer to nearest wholedollar.)