ASAP

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 equal its book value. There would be no salvage value at the erd of the investment's life. Investment Proposal Annual Annual Year Book Value Cash Flows Net Income 1 $69.900 $46,000 $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 5 24.220 16,620 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 2.91 years (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, eg. 10.50%) 0.28 % Annual rate of return for the investment (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 0.28 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 numbers -45 or parentheses es (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $ TABLE 1 Future Value of 1 (R) Periods 4% 5% 6% 7% 8% 9% 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 1.04000 1.05000 1.06000 1.07000 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 2 1.08160 1.10250 1.12360 1.14490 1.16640 1.18810 1.21000 1.23210 1.25440 1.32250 3 1.12486 1.15763 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 1.74901 5 1.21665 1.27628 1.33823 1.40255 1.46933 1.53862 1.68506 1.76234 2.01136 1.61051 1 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 8 1.36857 1.47746 1.59385 L21819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 3.51788 9 1.42331 1.55133 1.68948 1.83846 1.99900 2.17189 2.35795 2.55803 2.77308 3.10585 10 1.48024 1.62889 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 4.04556 11 1.53945 1.71034 1.89830 2.10485 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 535025 12 1.60103 1.79586 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845 3.89598 13 1.66507 1.88565 2.13293 2.40985 2.71962 3.06581 3.45227 3.88328 4,36349 6.15279 14 1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.31044 4.88711 7.07571 15 1.80094 2.07893 2.39656 2.75903 3.17217 3.64248 4.17725 4.78459 5.47357 8 13706 16 1.87298 2.18287 2.54035 2.95216 3.42504 3.97031 4.59497 5.31089 6,13039 0,35762 17 1.94790 2.29202 2.69277 3.15882 3.70002 4.32763 5.05447 5.89509 6,86604 10.76126 18 2.02582 2.40662 2.85434 3.37993 3.99602 4.71712 5.55992 6.54355 7.68997 12.37545 19 2.10685 2.52695 3.02560 3.61653 4.31570 5.14166 6.11591 726334 8.61276 14.23177 20 2.19112 2.65330 3.20714 3.8696 4.66096 5.60441 6,72750 8.06231 9.64629 16.36654 TABLE 2 Future Value of an Annuity of 1 (n) Payments 5% 6% 7% 8% 99% 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 2.11000 2.12000 2.15000 2.10000 3.31000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.34210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6,22780 6.35285 6.74238 6 6.63298 6.80191 6.97532 7.1533 71561 7.52334 7.91286 8.11519 8.75374 7.33592 8.92280 7 7.89829 8.14201 8.39384 8.6540 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 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 10.58280 12.00611 10 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 20.30372 17.54874 11 13.48635 14.20679 14.97164 15.7836 18.53117 16,64549 17.56029 24.34928 19.56143 20.65458 16.86994 12 15.02581 17.8885 15.91713 18.97713 22.71319 20.14072 21.38428 24.13313 29.00167 18.88214 17.71298 20.1406 22.95339 13 16.62684 21.49530 24.52271 26.21164 28.02911 34.35192 21.01507 24.21492 26.01919 30.09492 40.50471 18.29191 19.59863 22.5505 14 32.39260 27.97498 31.77248 25.1290 27.15211 29.36092 34.40536 37.27972 23.27597 15 20.02359 21.57856 47.58041 30.32428 27.8881 33.00340 23.65749 42.75328 25.67253 35.94973 55.71747 16 21.82453 39.18995 44.50084 48.88367 33.75023 36.97351 40.54470 65.07509 17 23.69751 25.84037 28. 21288 30.8402 45.59917 37.45024 41.30134 50.39593 75.83636 33.9990 55.74972 28.13238 18 25.64541 30.90565 46.01846 51.15909 41.44626 56.93949 63.43968 88.21181 19 27.67123 37.3790 30.53900 33.75999 51.16012 57.27500 64.20283 45.76196 72.05244 102.44358 20 29.77808 33.06595 36,78559 40.9955 TABLE 3 Present Value of 1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 93458 92593 .91743 .90909 90090 89286 .86957 2 92456 90703 89000 .87344 85734 .84168 82645 .81162 79719 -75614 3 88900 86384 83962 81630 .79383 77218 75132 73119 71178 .65752 4 85480 .82270 -79209 76290 73503 .70843 57175 .68301 -65873 .63552 5 82193 -78353 .74726 71299 68058 64993 49718 .62092 59345 56743 I 56447 6 .74622 .70496 79031 63017 59627 50663 53464 43233 66634 .62275 7 -71068 .75992 66506 58349 54703 51316 45235 37594 48166 8 .73069 .67684 40388 .62741 58201 54027 50187 32690 146651 43393 .70259 .64461 9 54393 .59190 50025 46043 42410 28426 .39092 36061 .61391 10 55839 67556 50835 -46319 42241 .35218 38554 32197 24719 58468 52679 47509 38753 135049 28748 11 31728 21494 .64958 62460 42888 39711 55684 49697 35554 44401 31863 12 25668 28584 .18691 46884 141496 28966 36770 32618 25751 13 60057 53032 22917 16253 44230 38782 57748 50507 34046 29925 14 26333 23199 14133 20462 36245 48102 41727 31524 55526 27454 23939 20900 12289 18270 15 39365 45811 25187 16 33873 21763 18829 53391 29189 27027 16312 14564 10687 09293 116963 17 51337 .43630 19785 32136 31652 23107 21199 17986 15282 29586 25025 13004 18 GOSI .49363 41552 35034 13768 19 47464 07027 39573 27615 23171 19-419 16351 11611 33051 37689 20 31180 25842 21455 14864 10367 45639 06110 17843 12403 TABLE 4 Present Value of an Annuity of 1 (12) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 93458 .92593 91743 .90909 .90090 89286 .86957 2 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.71252 1.69005 1.62571 3 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 1.73554 12.48685 3.16986 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.10245 3.03735 2.85498 5 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 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 5.75902 5.53705 5.32825 4.77158 5.99525 6.41766 10 8.11090 7.72173 7.36009 7.02358 6.71008 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 5.58315 14 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 6.62817 5.72448 7.36669 7.60608 6.98187 7.19087 15 11.11839 10.37966 9.71225 9.10791 8.55948 806069 6.81086 5.84737 16 11.65230 10.83777 10,10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 17 12.16567 11.27407 10.47726 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 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933