ZORAC, Inc. is contemplating an investment of $50,000 which yeilds the following cash flows:
Year CF
1 $10,000
2 $ 10,000
3 $ 16,000
4 $ 18,000
5 $ $20,000
a) What is the actual payback period?
b) What is the net present value at a cost of capital of 9%?
c) What is the internal rate of return?
Note: you must use the smallest rate spread possible with your factor tables to result in the tightest interpolation.