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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,

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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 life. Investment Proposal Initial Cost and Book Annual Cash Flows Annual Net Income o $104,000 70,900 $46,000 $12,900 40,600 35,900 30,100 25,000 12,200 13,800 18,300 16,400 42,500 20,400 8,600 Drake Corporation uses an 11% target rate of return for new investment proposals Click here to view PV table. What is the cash payback periad for this proposal? (Round answer to 2 decimal ploces, es. 10.50j years Cash payback period What is the annual rate of return for the investment? (Round answer to 2 decimal places, eg. 10.50) Annual rate of return for the investment 0 25,000 16,400 Drake Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table What is the cash payback period for this proposal? (Round answer to 2 decimal places, e-g. 10.50) Cash payback perlod years What is the annual rate of return for the investment? (Round onswer to 2 decimal places, e 1050 Annual rate of return for the investment What is the net present value of the investment? (if the net present value is negative, use either a negative sign preceding the number es 45 or parentheses eg (45). Round answer to O decimal places,eg. 125. For calculation purposes, use S decimal places as displayed in the factor table provided. Net present value eTextbook and Media

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