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Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment Roopali is considering an investment proposal with the following cash
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment Roopali is considering an investment proposal with the following cash flows: Initial investment-depreciable assets Initial investment-working capital $112,000 20,000 Net cash inflows from operations (per year for 10 years) 22,000 6,000 2,000 Disinvestment-depreciable assets Disinvestment-working capital For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. 6 years b. Determine the accounting rate of return on initial investment 8.636 c. Determine the accounting rate of return on average investment 16.286 x Check
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