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29 May, 15:28

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:

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  1. 29 May, 15:33
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    The proposed investment follows the following,

    Two hot air balloons previous investment is calculated to be $420,000

    Useful life for 10 years

    Salvage value is calculated to be $ 50,000

    Annual net income generated is $ 37,800

    BBS's cost of capital is calculated to be 11 % assuming straight line depreciation method is used.
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