Mouser Company Is Evaluating a Capital Expenditure Proposal with the Following

Mouser Company is evaluating a capital expenditure proposal with the following predicted cash flows:
$$\begin{array} { l r } \text { Initial investment: } & \$ 54,000 \\\text { Operations: } & \\\quad \text { Year 1 } & \$ 20,000 \\\quad \text { Year 2 } & 15,000 \\\quad \text { Year 3 } & 25,000 \\\text { Salvage value: } & -0-\end{array}$$ Additional information for interest rate of 12 percent:
$$\begin{array} { l l } \text { Present value of \$1-Year 1 } &\quad& 0.89286 \\\text { Present value of \$1-Year 2 } &\quad& 0.79719 \\\text { Present value of \$1-Year 3 } &\quad& 0.71178 \\\text { Present value of an annuity of \$1, (3 periods) } &\quad& 2.40183\end{array}$$ Required: Determine the following values:
a. Net present value of the investment at a discount rate of 12 percent
b. Payback period
c. Accounting rate of return using average investment