Drake Corporation is reviewing an investment proposal. The initial cost is $107,700. 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 assumed to equal its book value. There would be no salvage value at the end of the investments life.

Investment Proposal
Year		Book Value			Annual Cash Flows			Annual Net Income
1		$69,300			$45,700			$7,300
2		41,600			40,400			12,700
3		21,300			36,000			15,700
4		8,200			31,000			17,900
5		0			24,605			16,405

Drake Corporation uses an 11% target rate of return for new investment proposals.

what is the cash payback period in years?

what is the annual rate of return for the investment?

what is the net present value of the return?