3. (12 pts) ABC Inc. is considering a project with the following cash flows. Cash flows in parentheses denote negative cash flows.

Year Cash Flow

0 ($200,000)

1 120,000

2 120,000

3 ?

4 120,000

Discount Rate K is 10 percent. The project's modified internal rate of return (MIRR) is 16.38%.

A. What is the expected cash flow in year 3?

B. What is NPV of the project?

C. What is the payback period?