Determine accounting rate of return on initial investment

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Reference no: EM133070202

Question - Juliana is considering an investment proposal with the following cash flows:

Initial investment-depreciable assets $55,000

Net cash inflows from operations (per year for 10 years) 11,000

Disinvestment 0

Required -

a. Determine the payback period.

b. Determine the accounting rate of return on initial investment.

c. Determine the accounting rate of return on average investment.

Reference no: EM133070202

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