A) Cash Payback period in yearsB) Anual rate of return for the investment in %C) Present value of the Investment in $

Drake Corporation is reviewing an investment proposal. The initial cost is $106,000. 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 schedule below. All cash ows are assumed to take place at the end of the year. The salvage value ofthe investment at the end of each year is assumed to equal its book value. There would be no salvage value at the end of the investment's life. Investment Proposal Book Annual Annual Year Value Cash Flows Net Income 1 $69300 3344.100 $7,400 2 42,600 40,300 13,600 3 20.000 36,000 13,400 4 6,500 29,800 16,300 5 0 24,700 18,200 Drake Corporation uses an 11% target rate of returr'ifor new investment proposals, Click here to view the factor table. (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, 2.3. 10.50.) [a Cash payback period years ____