Question: Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate payback period. Note: Round your answer to 2 decimal






Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate payback period. Note: Round your answer to 2 decimal places. Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 4. Without making any calculations, determine whether the IRR is more or less than 15%. As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $95,000 cash paid today; $95,000 to be paid in one year; and an annuity of $23,000 to be paid each year for 7 years. Required: What is the present value of the package assuming an interest rate of 9 percent? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar. Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate accounting rate of return. Note: Round your answer to 1 decimal place. Answer is not complete. Complete this question by entering your answers in the tabs below. Without making any calculations, determine whether the IRR is more or less than 15%. \begin{tabular}{|c|c|c|} \hline Table or Calculator Function: & Present Value of $1 & \\ \hline Cash Outflow (Beginning of the Year) & 1,740,000 & \\ \hline n= & 0 & \\ \hlinei= & 15% & % \\ \hline Present Value & 1,740,000 & \\ \hline Table or Calculator Function: & Present Value Annuity of $1 & \\ \hline Cash Inflow (for Next 10 Years) & 332,260 & \\ \hline n= & 10 & \\ \hlinei= & \begin{tabular}{l|l} 15 & % \end{tabular} & % \\ \hline Table Factor & & \\ \hline Present Value & 1,667,546 & \\ \hline Table or Calculator Function: & Present Value of $1 & \\ \hline Cash Inflow (for 10th Year) & 140,000 & \\ \hline n= & 10 & \\ \hline i= & 15% & % \\ \hline Table Factor & 0.2472 & \\ \hline Present Value & 34,608 & \\ \hline Total Net Present Value & 37,846 & \\ \hline \end{tabular}
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