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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 flows:
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 $125,000 Initial investment-working capital 19,000 Net cash inflows from operations (per year for 12 years) 18,000 Disinvestment-depreciable assets 14,000 Disinvestment-working capital 2,000 For parts b. and C., round answers to three decimal places, if applicable. a. Determine the payback period. 8 years b. Determine the accounting rate of return on initial investment 6.076 x c. Determine the accounting rate of return on average investment 10.937 x
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