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Current Attempt in Progress Drake Corporation is reviewing an investment proposal. The initial cost and estimates of the book value of the investment at the

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Current Attempt in Progress Drake Corporation is reviewing an investment proposal. The initial cost and 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 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 equal to its book value. There would be no salvage value at the end of the investment's life. Year Annual Net Income 0 1 2 3 4 Investment Proposal Initial Cost Annual and Book Value Cash Flows $104,100 69.400 $44,300 42.600 39,700 20,500 34,600 8.800 30,300 $9.600 12.900 12.500 18,600 15 Year Annual Net Income 0 Investment Proposal Initial Cost Annual and Book Cash Flows Value $104,100 69.400 $44,300 42,600 39,700 20,500 34,600 8,800 30,300 0 24.700 1 2 3 4 $9,600 12.900 12,500 18,600 15,900 Drake Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table Drake 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, es 10.50) Cash payback period years (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, eg. 10.50 Alicaarbant (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 % (c) What is the net present value of the investment of the net present value is negative, use either a negative sign preceding the numbers -45 or parentheses es (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

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