Calculate the payback, annual rate of return, and net present value (LO 1, 2, 5) ICA Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the investment's book value at the end of each year, the net cash flows for each year, and the net income for each year. All cash flows are assumed to take place at the end of the year. The investment's salvage value at the end of each year is equal to its book value. There would be no salvage value at the end of the investment's life ome for cach yea: ll aso foch yeri ca is book Investment Proposal Year Initial Cost and Book Value Annual Cash Flows Annual Net Income 0 $250,000 170,000 140,000 90,000 $90,000 75,000 60,000 40,000 30,000 $25,000 27,000 29,000 31,000 33,000 445,000 0 ICA Corporation uses a 15% target rate of return for new investment proposals Instructions Calculate the cash payback period for this proposal Calculate the annual rate of return for the investment ARR 23.2% Calculate the net present value of the investment