1. You are considering a new product. Machinery and equipment will cost $60,000 if bought today and it will be depreciated straight line to zero over the next three years. In addition, you will require a working capital of $15,000 immediately to get the product to the market next year. The new product is expected to generate revenue of $100,000 per year for the next 3 years. Project operating costs will be $40,000 per year. At the end of the three years, you will recover your initial working capital. Taxes will be 40% and the project's risk level is specified to be high and thus you assign a required return of 11% to it.

Calculate:

1. Payback period
2. NPV
3. IRR