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 investment depreciable assets Net cash inflows from operations (per year for 10 years Disinvestment depreciable assets $100,000 25,000 19,000 For parts b. and c, round answers to three decimal places, if applicable a. Determine the payback period. 0 years b. Determine the accounting rate of return on initial investment. 0 c. Determine the accounting rate of return on average investment. 0

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter12: Capital Investment Analysis
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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 investment-depreciable assets
$100,000
Net cash inflows from operations (per year for 10 years) 25.000
Disinvestment-depreciable assets
19.000
For parts b. and c., round answers to three decimal places, if applicable.
a. Determine the payback period.
0
years
b. Determine the accounting rate of return on initial investment.
0
c. Determine the accounting rate of return on average investment.
0
Transcribed Image Text: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 investment-depreciable assets $100,000 Net cash inflows from operations (per year for 10 years) 25.000 Disinvestment-depreciable assets 19.000 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. 0 years b. Determine the accounting rate of return on initial investment. 0 c. Determine the accounting rate of return on average investment. 0
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