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Khazanchi is considering an investment proposal with the following cash flows: Initial investment - depreciable assets ........ $90,000 Initial investment - working capital......... 12,500 Net
Khazanchi is considering an investment proposal with the following cash flows:
Initial investment - depreciable assets ........ $90,000
Initial investment - working capital......... 12,500
Net cash inflows from operations (per year for 8 years) ........ 25,000
Disinvestment - depreciable assets ...... 10,000
Disinvestment - working capital 12,500
- Determine the payback period.
- Determine the accounting rate of return in initial investment.
- Determine the accounting rate of return on average investement.
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