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

Initial investment: $54,000

Operations:

Year 1: $20,000

Year 2: $15,000

Year 3: $25,000

Salvage value: $0

Additional information for interest rate at 12%

PV of $1, year 1 = 0.89286

PV of $1, year 2 = 0.79717

PV of $1, year 3 =0.71178

PV of an annuity of $1 (3 periods) = 2.40183

Determine the following values:

1.) Net present value of the investment at a discount rate of 12%

2.) Payback period

3.) Accounting rate of return using average investment