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Menu QUESTION 1 Partially correct 0.67 points out of 2.00 Flag question Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without
Menu QUESTION 1 Partially correct 0.67 points out of 2.00 Flag question Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is considering an investment proposal with the following cash flows: Initial investment-depreciable assets Net cash inflows from operations (per year for 10 years) Disinvestment $40,000 5,000 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. 8 years b. Determine the accounting rate of return on initial investment. 2.6 c. Determine the accounting rate of return on average investment 62.5 % Check 8 6 9 0
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