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 Annual Cash Flows Annual Net Income Year and Book Value 0 $105,800 69,800 42,200 21,800 6,300 $46,000 39,400 34,300 29,300 24,000 $10,000 11,800 13,900 13,800 17,700 2 3 4 Drake Corporation uses an 11% target rate of return for new investment proposals. k here to view abl What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period 2.595 Jvears What is the annual rate of return for the investment? (Round answer to 2 decimal places, e.g. 10.50.) Annual rate of return for the investment 32.70 11 %