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 $112,000

Initial investment-working capital 20,000

Net cash inflows from operations (per year for 10 years) 22,000

Disinvestment-depreciable assets 6,000

Disinvestment-working capital 2,000

a. Determine the payback period.

b. Determine the accounting rate of return on initial investment (For parts b. and c., round answers to three decimal places, if applicable. )

c. Determine the accounting rate of return on average investment (For parts b. and c., round answers to three decimal places, if applicable. )