Question: a. Find the accounting return on investment for a project that costs $10,000, will have no salvage value , and has expected annual after-tax profits

a. Find the accounting return on investment for a project that costs $10,000, will have no salvage value, and has expected annual after-tax profits of $1,000.

b. Determine the payback period for a capital investment that costs $40,000 and has the following after-tax profit. (The project outlay of $40,000 will be depreciated on a straight-line basis over seven years to a zero salvage value.)

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