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$)$$ $442,000$Useful life$9$yearsSalvage value$ $46,000$Annual net income generated$ $39,338$BBS$$s cost of capital$7\%$

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 answer to nearest whole dollar.

Recalculate the NPV assuming BBS$\text{'}$s cost of capital is $10$ percent.

Note: Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.

Balloons By Sunset $($BBS$)$ is considering the purchase of two new hot alr balloons so that it can expand its desert sunset

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

Annulty of $$1,$ Present Value Annulty of $$1.)$

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

Initial investment $($for two hot air balloons$)$

$ $$442,000$

$\backslash$

Annual net income generated $$39,338$

BBS$\text{'}$s cost of capital

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 perlod.

Note: Round your answer to $2$ decimal places.

Net present value $($NPV$).$

Note: Do not round Intermediate calculations. Negatlve amount should be Indicated by a minus sign. Round the

final answer to nearest whole dollar.

Recalculate the NPV assuming BBS$\text{'}$s cost of capital is $10$ percent.

Note: Do not round Intermedlate calculatlons. Negative amount should be Indicated by a minus sign. Round the

final answer to nearest whole dollar.

Those answers are wrong