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. Investment Proposal Year Initial Cost and Book Value Annual Cash Flows Annual Net Income 0 $104,300 1 69,700 $46,000 $11,400 2 41,100 40,100 11,500 3 20,900 34,200 14,000 4 7,000 29,200 15,300 5 0 25,300 18,300 Drake Corporation uses an 11% target rate of return for new investment proposals. (a) What is the cash payback period for this proposal? (b) What is the annual rate of return for the investment? (c) What is the net present value of the investment?