Question: I need help with this accounting question please. There are 4 parts to question Balloons By Sunset ( BBS ) is considering the purchase of
I need help with this accounting question please. There are 4 parts to question


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 follow 's * Initial investment ( for two hot air balloons ) $ 369, 000 Useful life 9 years Salvage value $ 45, 000 Annual net income generated 32 , 103 BBS'S cost of capital 12% 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 1 decimal place . ) Accounting Rate of Return 2 . Payback period . ( Round your answer to 2 decimal places . ) Payback Period Years3 . Net present value ( NPV ) . ( 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 not round intermediate calculations . Negative amount should be indicated by a minus sign . Round the final answer to nearest whole dollar . !* Net Present Value 4 . Recalculate the NPV assuming BBS'S cost of capital is 15 percent . ( Future Value of $1 . Present Value of $1 . Future Value Annuity of $1 . Present Value Annuity of $1 . ) ( Use appropriate factor ( 5 ) From the tables provided . Do not round intermediate calculations . Negative amount should be indicated by a minus sign . Round the final answer to nearest whole dollar . ) Net Present Value
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