George is considering the following investment proposal:

Initial investment:
Depreciable assets (straight-line)	$15,000
Working capital	10,000
Operations (per year for 4 years):
Cash receipts	$20,000
Cash expenditures	12,000
Disinvestment:
Salvage value of equipment	$2,000
Recovery of working capital	5,000
Discount rate	8 percent

Period	Present Value Factor
1	0.92593
2	0.85734
3	0.79383
4	0.73503

Required: Determine the following values:

a. Payback period

b. Accounting rate of return on average investment

c. Net present value