Cash flow details
Years	Inflow $	Outflow
0		-88,000
1	36,000
2	36,000
3	36,000
4	36,000	8,000 terminal disposal

Annas Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital. Annas Bakery has a 12% after-tax required rate of retuned and a 40% income tax rate. Assume depreciation is calculated on a straight line basis for tax purposes using the initial oven investment and estimated salvage value of the oven. Assume cash flows occur at year-end except for initial investment amounts.

Require

Calculate A. Net present Value B. payback period C. internal rate of return