The company requires a 12% return and uses straight line depreciation for this asset with a four year useful life. They have a 3-year cut-off for payback decisions and use 20% for AAR decisions. 1) Compute the NPV and recommend action 2) Compute the payback period and recommend action h 3) Compute the Average Accounting Return and recommend action 4) Compute the Profitability Index and recommend action 401234 Year Initial cost 90,000 Cash Flow Accounting Income 16,000 (28,000) 28,000 21,000 48,000 19,000 40,000 18,000