Mouser Company 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-
Discount rate	12%

Required: Determine the following values:

a. Net present value of the investment at a discount rate of 12 percent, using a spreadsheet or financial calculator

b. Payback period

c. Accounting rate of return using average investment