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 investments life.

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. Investment Proposal Initial Cost Year Annual Annual and Book Value Cash Flows Net Income $105,700 69,300 $44,500 $8,100 41,500 40,300 12,500 13,500 34,900 20,100 17,800 8,600 29,300 25,400 16,800 Drake Corporation uses an 11% target rate of return for new investment proposals. Click here to vi w PV table (a) what is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50) Cash payback period years (b) what is the annual rate of return for the investment? (Round answer to 2 decimal places, e.g. 10.50.) al rate of return r the investment Annu (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 eg -45 or parentheses eg (45). Round answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value