Question: It is one question, I need help with this plz, thank you! Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various




Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,550,000 10 years $ 140,000 $ 149,760 14% 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 4. Without making any calculations, determine whether the IRR is more or less than 14% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return Rocuired Required 2 > Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life Salvage value Annual net income generated LLT's cost of capital $1,560,000 10 years $ 140,000 $ 149,760 14% 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. 4. Without making any calculations, determine whether the IRR is more or less than 14%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate payback period. (Round your answer to 2 decimal places.) Payback Period years wload Table or Calculator Function: Cash Outflow (Beginning of the Year) n= = II % Present Value Table or Calculator Function: Cash Inflow (for Next 10 Years) n = i = = % Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) n = i = % Table Factor Present Value Total Net Present Value Table or Calculator Function: Cash Outflow (Beginning of the Year) n = Future Value Annuity of $1 Present Value Future Value of $1 Table or Calculator Function: Cash Inflow (for Next 10 Years) Present Value Annuity of $1 Present Value of $1 n = TI % Table Factor Present Value Table or Calculator Function: Cash Infiow (for 10th Year) n= Table Factor i= % Present Value Total Net Present Value
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