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.