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Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment Minn is considering an investment proposal with the following cash flows:
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment Minn is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $90,000 Net cash inflows from operations (per year for 10 years) 15,000 Disinvestment-depreciable assets 12,000 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. 82,500 X c. Determine the accounting rate of return on average investment. 0.161 X
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