Company X is evaluating a capital expenditure proposal with the following predicted cash flows:

Initial investment:	$110,000
Operations:

	Year 1	$40,000
	Year 2	30,000
	Year 3	55,000

Salvage value:

-0-

Additional information for interest rate of 12 percent:

Present value of $1 - year 1	0.893
Present value of $1 - year 2	0.797
Present value of $1 - year 3	0.712
Present value of an annuity of $1 (3 periods)	2.402

Required:Determine the following values:

a.	Net present value of the investment at a discount rate of 12 percent
b.	Payback period
c.	Accounting rate of return using average investment