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:
$$\begin{array} { l r } \text { Initial investment: } & \$ 54,000 \\\text { Operations: } & \\\quad \text { Year 1 } & \$ 20,000 \\\quad \text { Year 2 } & 15,000 \\\quad \text { Year 3 } & 25,000 \\\text { Salvage value: } & -0- \\\text { Discount rate } & 12 \%\end{array}$$ Required: Determine the following values:
a. Net present value of the investment at a discount rate of 12 percent, using a spreadsheet or financial calculator
b. Payback period
c. Accounting rate of return using average investment