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Question 6 Partially correct Mark 1.25 out of 3.75 '7 Flag question 0 Edit question Payback Period and Accounting Rate of Return: Equal Annual Operating
Question 6 Partially correct Mark 1.25 out of 3.75 '7 Flag question 0 Edit question 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 investmentdeprecia ble assets $84,000 Net cash inflows from operations (per year for 10 years) 12,000 Disinvestmentvdepreciable assets 22,000. For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. 7 v years b. Determine the accounting rate of return on initial investment. 6.905 X c. Determine the accounting rate of return on average investment. 1 0.943 X
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