Question: please help me solve the problem Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand
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 Annuty of \$1) (Use oppropriate factor(s) from the tables provided.) Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accourting rate of return. (Round your answer to 2 decimal pleces.) 2. Payback period. (Round your onswer to 2 decimal places.) 3. Net present value (NPV). (Do not round intermediate calculations. Negotive omount should be indicated by a minus sign. Round the final answer to nearest whole dollar) 4. Recalculate the NPV assuming B8S's cost of capital s12 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to neorest whole dollar.) 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 Annuty of \$1) (Use oppropriate factor(s) from the tables provided.) Assume straight line depreciation method is used. Required: Help BBS evaluate this project by calculating each of the following: 1. Accourting rate of return. (Round your answer to 2 decimal pleces.) 2. Payback period. (Round your onswer to 2 decimal places.) 3. Net present value (NPV). (Do not round intermediate calculations. Negotive omount should be indicated by a minus sign. Round the final answer to nearest whole dollar) 4. Recalculate the NPV assuming B8S's cost of capital s12 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to neorest whole dollar.)
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