Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana...
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Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is considering an investment proposal with the following cash flows:
| Initial investment-depreciable assets | $35,000 |
| Net cash inflows from operations (per year for 10 years) | 5,000 |
| Disinvestment | 0 |
For parts b. and c., round answers to three decimal places, if applicable.
a. Determine the payback period.
____ years
b. Determine the accounting rate of return on initial investment.
c. Determine the accounting rate of return on average investment.
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