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		$104,500
1		69,600			$44,000			$9,100
2		41,900			39,500			11,800
3		21,600			35,900			15,600
4		8,300			31,000			17,700
5		0			25,400			17,100

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

a.What is the cash payback period for this proposal? The answer I got which is right is 2.58 years.

b.What is the annual rate of return for the investment?

c.What is the net present value of the investment?

Please show me the steps you use to answer b and c.