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 Annual Annual Cash Flows Net Income Initial Cost Year and Book Value $105,800 1 69,800 $46,000 $10,000 2 42.200 39,400 11,800 3 21,800 34,300 13,900 4 6,300 29,300 13,800 5 0 24,000 17,700 Drake Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table.