Exercise 12-11 Drake Corporation is reviewing an investment proposal. The initial cost is $104,600. 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 years assumed to equalis book value. There would be no salvage valut at the end of the investment's wife Investment Proposal Annual Annual Year Book Value Cash Flows Net Income 1 $69,900 546,000 $11,300 2 41,000 40.600 11,700 21,000 36,000 16,000 4 7,600 31,000 17,600 5 D 24,220 16,620 Drake Corporation uses an 11% target rate of return for new investment proposals Certies. P.table, What is the cash payback period for this proposal? (Mound wwwer to 2 decimal aces. 10.30.) Cash payback period Years What is the annual rate of return for the investment (Round answer to 2 decimal. 10.30.) Annual rate of return for the investment (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, ag. 10.50.) Cash payback period years () What is the annual rate of return for the investment? (Round answer to 2 decimal places, e-9. 10.50%) Annual rate of return for the investment What is the net present value of the investment? (Ir the net present value is negative use alther a negative in preceding the number or parentheses (45). Hound answer to decimal places, .g. 125. For calculation purposes, we decimal places as displayed in the factor table provided) Net present value