ON Initial investment-depreciable assets. Initial investment-working capital... Net cash inflows from operations (per year for 5 years). Disinvestment-depreciable assets Disinvestment-working capital 20,000 24,000 20,000 20,000 BO Required a. Determine the payback period. b. Determine the accounting rate of return on initial investment. c. Determine the accounting rate of return on average investment. Exercises E12-20. LO2, 8 Goodrich Petroleum Corporation (GDP) NPV and IRR: Unequal Annual Net Cash Inflows Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows: $(160,000) Homework ( Initial investment...... Operation Year 1 Year 2 Year 3 Salvage. 42,000 95,000 65,000 0 Cambridge Business Publishers Chapter 12 Capital Budgeting Decisions Required a. Using a discount rate of 10%, determine the net present value of the investment proposal. b. Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table ap- proach.) Hint: You will need to use a trial-and-error approach. NPV and IRR: Unequal Annual Net Cash Inflows Rocky Road Company is evaluating a capital expenditure proposal that has the following predicted cash flows: LO2,8 E12-21. Homework ( $(85,000) Initial investment. Operation Year 1 Year 2 Year 3 Salvage.. 30,500 60,000 31,000 0 Required a. Using a discount rate of 12%, determine the net present value of the investment proposal. b. Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table ap- proach.) Hint: You will need to use a trial-and-error approach. E12-22. Payback Period, IRR, and Minimum Cash Flows to The management of Mohawk Limited is currently evaluating the following investment proposal: Year 1 LO2, 3,8 Homewo ( Year 3 Year 4 Year 2 Time 0 $210,000 $70,000 $70,000 $70,000 $70,000 Initial investment.. Net operating cash inflows..... wired