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Crane Corporation is reviewing an investment proposal. The initial cost is $104,600. Estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the following schedule All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is assumed to equalits book value. There would be no salvage value at the end of the investment's life. Investment Proposal Annual Book Value Cash Flows $69.900 $46,000 Annual Net Income Year 1 $11,300 2 41,000 40,600 11,700 3 21,000 36,000 16,000 4 7.600 31.000 17,600 5 0 24.220 16,620 Crane Corporation uses an 11% target rate of return for new investment proposals. Crane Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table. (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, eg. 10.50.) Cash payback period I years (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, eg. 10.50%.) Annual rate of return for the investment GS (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, eg. 10.50%) Annual rate of return for the investment 96 (c) What is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number es. -45 or parentheses eg (45). Round answer to decimal places, es, 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value $ TABLE 1 Future Value of 1 (n) Periods 5% 6% 7% 8% 9X 10% 11% 12% 15% 0 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 1.04000 1.08160 2 1.10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440 1.32250 3 1.12486 115763 1.19102 1.22504 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 4 1.16986 1.21551 1.26248 1.31080 1.36049 1.41158 1.46410 1.51807 1.57352 1.76234 1.74901 2.01136 5 1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.61051 1.68506 6 1.26532 1.34010 1.41852 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 2.31306 7 1.31593 1.40710 1.50363 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 & 1.36857 1.47746 1.59385 1.71819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 3.51788 9 1.42331 1.55133 1.68948 1.83846 1.9990 2.17189 2.35795 2.55803 2.77308 10 1.48024 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 3.1058S 4,04556 1.53945 11 1.71034 1.89830 2.10483 2.33164 2.58043 2.85312 3.15176 4.65239 3.47855 12 1.60103 2.01220 2.25219 2.51817 2.81262 5.35025 3.13843 3.49845 3.89598 1.79586 1.88565 13 1.66507 2.13293 2.71962 3.06581 3.45227 3.88328 4.36319 6.15279 2.40985 2.57853 1.97993 14 2.26090 2.93719 3.34173 1.73168 4.31044 3.79750 4.88711 7.07571 1.80094 2.75903 4.78459 15 2.07893 3.17217 5.47357 2.39656 3.64248 4.17725 8.13706 3.97031 2.95216 4.59497 16 2.54035 3.42594 5.31089 6.13039 1.87298 9.35762 2.18287 1.94790 3.15882 5.05447 17 2.29202 2.69272 3.70002 4.32763 6.86604 10.76126 5.89509 2.02582 3.37993 3.99602 6.54355 2.40662 4.71212 7.68997 18 2.85434 5.55992 12.37545 2.52695 19 6.11591 14.23127 2.10685 3.61653 7.26334 431570 5.14166 8.61276 3.02560 6.72750 9.64629 2.19112 4.66036 5.6041 16.36654 20 8.06231 2.65330 3.20714 3.86968 TABLE 2 Future Value of an Annuity of 1 (n) Payments 5% 7% 8% 9% 10% 11% 12% 15% 1 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.99338 4.77033 6.35285 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.74238 6 6.63298 6.80191 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 6.97532 8.39384 7 7.89829 8.14201 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 11.02656 12.57789 10 12.00611 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 12 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 14 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 17 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 18 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.99917 50.39593 55,74972 75.83636 19 27.67123 30,53900 37.3790 41.44626 46.01846 SL. 15909 56.93949 63.43968 88.21181 33.75999 36.78559 20 29.77808 33,06595 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 TABLE 3 Present Value of 1 (n.) Periods 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 93458 92593 .91743 .90090 89286 .86957 2 .90909 .82645 92456 -90703 89000 .87344 -85734 84168 81162 79719 -75614 3 88900 86384 83962 81630 79383 .77218 .75132 .73119 -71178 .65752 4 85480 82270 .79209 .76290 .73503 .70843 68301 .65873 .63552 57175 5 82193 .78353 .74726 171299 .68058 .64993 .62092 59345 56743 49718 6 .79031 -74622 70496 .66634 -63017 59627 56447 53464 50663 .43233 7 .75992 .71068 .66506 .62275 58349 54703 51316 48166 -45235 37594 be .67684 .62741 58201 54027 .S0187 46651 .43393 40388 32690 -73069 -70259 9 .64461 -59190 .54393 50025 46043 42410 39092 36061 28426 10 67556 .61391 .55839 50835 .46319 42241 -38554 35218 32197 24719 11 _64958 58468 52679 .42888 31728 28748 21494 47509 44401 .38753 -35554 35049 31863 12 62460 55684 49697 139711 28584 25668 18691 13 .60057 .53032 46884 41496 136770 32618 28966 25751 22917 16253 14 57748 .50507 44230 38 782 34016 129925 26333 23199 20462 14133 15 55526 -48102 -41727 36245 31524 27454 23939 20900 -18270 .12289 16 53391 .45811 39365 33873 29189 21763 18829 116312 10687 25187 23107 17 51337 .43630 37136 -31657 27027 19785 .16963 .1456+ 09293 18 49363 41552 35034 129586 125025 21199 17986 15282 13004 08081 19 47464 39573 133051 27615 23171 19:449 16351 .13768 11611 07027 20 45639 37689 31180 25842 .21455 17843 14864 12403 10367 06110 TABLE 4 Present Value of an Annuity of 1 (I) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 .96154 95238 94340 .93458 92593 .90909 .89286 86957 191743 1.75911 90090 1.71252 2 1.88609 1.85941 1.83339 1.80802 1.78326 1.73554 1.69005 1.62571 3 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.38721 3.03735 2.85498 3.31213 3.99271 3.23972 3.88965 3.16986 3.79079 3.10245 3.69590 5 4.45182 4.32948 4.21236 4.10020 3.60478 3.35216 6 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 7 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 9 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 12 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 S.58315 14 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.62817 5.72448 6.98187 7.19087 15 11.11839 10.37966 9.71225 9.10791 8.35948 8.06069 7.60608 6.81086 5.84737 16 11.65230 10.83777 10.10590 9.41665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 17 12.16567 11.27407 10.42726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6,04716 18 12,65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24962 6.12797 19 13.13394 12.08532 11.15812 10.33560 9,60360 8.95012 8.36492 7.83929 7.36578 6.19823 20 13.59033 12.46221 11.46992 ID 59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933