Exercise 26-11 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 yea The salvage value of the investment at the end of each year is equal to its r. book value. There would be no salvage value at the end of the investment's life. Investment Proposal Year Initial Cost Annual Annual and Book Value Cash Flows Net Income $105, 600 $10,200 70,300 $45,500 13,000 43,000 40,300 35,900 14,900 22,000 15,900 8,700 29,200 25,300 16,600 Drake Corporation uses an 11% target rate of return for new investment proposals. (a) what is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period ears (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, e.g. 10.50.) ate of return for the investment Annua