Exercise 24-11 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 $105,600 70,300 43,000 22,000 8,700 0 0 2 3 4 $45,500 40,300 35,900 29,200 25,300 $10,200 13,000 14,900 15,900 16,600 Drake Corporation uses an 11% target rate of return for new investment proposals. lic What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period ears