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Question 3: Details of proposed project of Samex LLC are given below: Initial Investment: $120,000 Expected life: 4 years (zero scrap value) Estimated Annual Cash

Question 3: Details of proposed project of Samex LLC are given below: Initial Investment: $120,000 Expected life: 4 years (zero scrap value) Estimated Annual Cash Flows: Year 1 $50,000 Year 2 $45,000 Year 3 $30,000 Year 4 $30,000 Estimated cost of capital is 10%

Calculate: a. Payback Period b. Accounting Rate of Return

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