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 $75,000
net cash inflows from operations (per year for 10 years) 15,000
disinvestment-depreciable assets 8,000
for parts b. and c., round answers to three decimal places, if applicable.

a) determine the payback period.
answer

years

b) determine the accounting rate of return on initial investment.
answer

c) determine the accounting rate of return on average investment.
answer

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear