Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with DisinvestmentKhazanchi is considering an investment proposal with the following cash flows:

Initial investmentdepreciable assets................................... $90,000

Initial investmentworking capital...................................... 12,500

Net cash inflows from operations (per year for 8 years) ..................... 25,000

Disinvestmentdepreciable assets..................................... 10,000

Disinvestmentworking capital........................................ 12,500

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