Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate complete 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 Value of $1. Present Value of 51. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided.) nt Initial investment for two hot air balloons) Uretul life Balvage value Annual net incone generated BBS cost of capital 5 369,000 7 years $ 54,000 33,579 79 Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accounting rate of return (Round your answer to 2 decimal places.) 2. Payback period. (Round your answer to 2 decimal places.) 3. Net present value (NPV). (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.) 4. Recalculate the NPV assuming BBS's cost of capitalis 10 percent. (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar) Answer is not complete 1 2 Accounting rate of retum Payback period Nel present value Net present value assuming 10% cost of capit 9.10 % 4.70 years a 4 Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $80,625 per year. Other information about this proposed project follows: $373,265 Initial investment Useful life Salvage value 7 years $ 45,000 Assume straight line depreciation method is used Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.) as 1. Accounting Rate of Return 2. Payback Period 38.55% 2.92 years