1. Machine Enterprises is considering an investment proposal with the following cash flows:

Initial investment-depreciable assets	$45,000
Net cash inflows from operations (per year for 10 years)	5,000
Disinvestment	0

Determine the accounting rate of return on initial investment and the accounting rate of return on average investment.

2. Great Texas is considering a capital expenditure proposal that requires an initial investment of $9,460, has predicted cash inflows of $2,000 per year for 16 years, and has no salvage value. determine the IRR for the project, if discount rate is 16.