Yankay Specialty Metals Corporation is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investments life.

Year	Initial Cost and Book Value			Annual Net After-Tax Cash Flows			Annual Net Income
0	$	210,000
1		140,000		$	99,000		$	29,000
2		84,000			87,000			31,000
3		42,000			75,000			33,000
4		14,000			63,000			35,000
5		0			51,000			37,000

Management uses a 10 percent after-tax target rate of return for new investment proposals.

Compute the projects payback period. Assume that the cash flows in years 1 through 5 occur uniformly throughout each year. (Round your answer to 2 decimal places.)

Calculate the accounting rate of return on the investment proposal. Base your calculation on the initial cost of the investment. (Round your "Percentage" answer to 1 decimal place (i.e., .1234 should be entered as 12.3)

Compute the proposals net present value.