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 trivestment Proposal Year Annual Initial Cost and Book Value Cash Flows Annual Net Income 0 $104,500 69,300 1 $45,900 $10.700 2 42.100 40,300 13.100 3 21.100 35.000 14.000 4 7.700 30,800 17,400 5 0 25,600 17.900 Drake Corporation uses an 11% target rate of return for new investment proposals Click here to view PV table fa) 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 es. 10.50 Annual rate of return for the investment la What is the net present value of the investment? Or the represente is negotive use either a negative in preceding the number 45 or parentheses es 1451. Round answer to decimal place, es 125. Per cuidation purposes. 5 decimal places as diplayed in the factor tobe provided) Net present value $ Current Attempt in Progress Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option A would have an initiallower cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality. it is expected to have a salvage value at the end of its useful life. The following estimates were made of the cash flows. The company's cost of capital is 6%. Option A $181,000 Option B $283,000 Initial cost Annual cash inflows $73,000 $82,400 Annual cash outflows $30,200 $25,100 $48,000 $0 Cost to rebuild (end of year 4) Salvage value Estimated useful life $0 $8,300 7 years 7 years Click here to view PV table (a) Compute the (1) net sent value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero) of the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses eg (45). Round answers for present value and IRR to decimal places, eg. 125 and round profitability index to 2 decimal places, eg. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net Present Value Profitability Index Internal Rate of Return Option A $ % Option B $ 96