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	$45,000
Initial investment-working capital	5,000
Net cash inflows from operations (per year for 7 years)	10,000
Disinvestment-depreciable assets	3,000
Disinvestment-working capital	2,000

a. Determine the payback period.

Round your answer to one decimal place; for example, enter 1.4 for 1.44 or 1.5 for 1.45.

Answer: 5 years

For parts b. and c., round your answers to three decimal places if applicable. For example, enter 0.084 for 0.0844 or 0.085 for 0.0845.

b. Determine the accounting rate of return on initial investment

Answer:

c. Determine the accounting rate of return on average investment

Answer: