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,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Initial investment $($for two hot air balloons$)$ $ $325,000$

Useful life $7$ years

Salvage value $ $45,000$

Annual net income generated $ $25,025$

BBS$$s cost of capital $11\%$

Assume straight line depreciation method is used.