Millennium Plc has ￡60,000 to spend on capital investment projects.
There is currently a choice of three projects: Meeney, Miney and Mo. It
will choose one of Meeney or Miney or Mo. The initial capital outlay is on
fixed assets with a five-year life. The cost of capital is 10 %.

                             Meeney                 Miney                  Mo
￡ ￡ ￡
Initial capital outlay 60,000                   30,000                  30,000
     Inflows Outflows Inflows Outflows Inflows Outflows
Year ￡     ￡       ￡     ￡    ￡        ￡
1 52,000  32,000  32,000  15,000  12,000  4,000
2 58,000  24,000  22,000  16,000  10,000  3,000
3 54,000  21,000 19,000 1 4,000  16,000  4,000
4 4,000  5,000        20,000 13,000 14,000 3,000
5 4,000  2,500          6,000  3,000 1 2,000  2,000
Required a calculation of:
(i) The payback period
(ii) The accounting rate of return
(iii) The net present value, and
(iv) The internal rate of return (use 20% discount rate).