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 and Book Annual Cash Flows Annual Net Income Year Value $104,100 69,900 41,600 20,900 7,800 $44,700 40,700 35,000 29,100 25,800 $10,500 12,400 14,300 16,000 18,000 4 Drake Corporation uses an 11% target rate of return for new investment proposals