The company is considering a capital expenditure of $480,000. It has an estimated life of 4 years and no salvage value. The estimated net income and new cash flow from the project are as follows:

Year 1 Net Income $90,000 Net Cash Flow $210,000

Year 2 Net Income 80,000 Net Cash Flow 200,000

Year 3 Net Income 40,000 Net Cash Flow 160,000

Year 4 Net Income 30,000 Net Cash Flor 150,000

Totals $240,000 $720,000

The company's minimum rate of return for net present value analysis is 15%. The present value of $1 at compound interest of 15% for 1, 2, 3, and 4 years is .870, .756, .658 and .572 respectively.

Determine:

a) the average rate of return on investment using straight line depreciation

b) the net present value

c) cash payback period (use actual forecasts, not averages).

NOTE: Please do not round