Minn is considering an investment proposal with the following cash flows: Initial investment - depreciable assets $125,000 Net cash inflows from operations (per year for 10 years) 25,000 Disinvestment - depreciable assets 27,000 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. Answer: 5 years b. Determine the accounting rate of return on initial investment. Answer: ? c. Determine the accounting rate of return on average investment. Answer: ?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.