Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons

Question

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:

Assume straight line depreciation method is used.
  

Help BBS evaluate this project by calculating each of the following:

Net present value (NPV). (Future Value of $1, Present Value of $1, Future Value Annuity of $1,Present Value Annuity of $1.)

Net present value = ????

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:

Explanation / Answer

no of period 7 rate 14% PMT 33124 FV 49000 PV $161,628.04 initial cost -364000 NPV ($202,371.96)

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