Question: this is the chart to fill out for net present value Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information

Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: $1,620,000 Initial investment (2 limos) Useful life 10 years Salvage value $ 140,000 Annual net income generated $ 157,140 158 LLT's cost of capital. 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 15%. Table or Calculator Function: Cash Outflow (Beginning of the Year) n = i= Present Value Table or Calculator Function: Cash Inflow (for Next 10 Years) Table Factor Present Value Table or Calculator Function: Cash Inflow (for 10th Year) Table Factor Present Value Total Net Present Value n= i= n= % % %
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