An investment project provides cash inflows of $1,200 per year for eight years. (Do not round intermediate calculations. Enter 0 if the project never pays back. Round your answers to 2 decimal places (e.g., 32.16).)

Requirement 1:

What is the project payback period if the initial cost is $3,950?

Payback period

years

Requirement 2:

What is the project payback period if the initial cost is $5,000?

Payback period

years

Requirement 3:

What is the project payback period if the initial cost is $10,600?

Payback period

years

Youre trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $18.2 million, which will be depreciated straight-line to zero over its four-year life.

Required:

If the plant has projected net income of $1,795,000, $2,135,000, $2,014,000, and $1,316,000 over these four years, what is the projects average accounting return (AAR)? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Average accounting return

%