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

It is one question, I need help with this plz, thank you!
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 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

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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