Problem 3 - Capital Investment (18 points) Williams Company is evaluating a project requiring a capital expenditure of $490,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year 1 2 3 Net Income $90,000 80.000 40,000 30,000 $240.000 Net Cash Flow $ 200,000 210.000 150,000 160.000 $720,000 0 The company's minimum desired rate of return for net present value analysis is 15%. The present value factors of S1 at compound interest of 15% are: Year 1 2 3 PV Factor .870 756 .658 1572 Determine: a) the average rate of return on investment, and b) the net present value of the investment, c) cash payback period