Final Exam 100022002 Ngy Question 9 of 12 < -/15 E I View Policies Current Attempt in Progress Oriole Corporation is reviewing an investment proposal. The initial cost is $105,400. 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 following schedule. 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 assumed to equal its book value. There would be no salvage value at the end of the investment's life. Investment Proposal Year Book Value Annual Cash Flows Annual Net Income 1 $69,500 $44,600 $8,700 2 41,000 39.200 10,700 3 21.900 36,000 16.900 4 9,000 30,800 17,900 0 23.310 14,310 Oriole Corporation uses an 11% target rate of return for new investment proposals 13 PIN CABITE Question 9 of 12 < > Oriole Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table. (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50) Cash payback period years (b) 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 01:36 24 -/15 E I 100322092 Nguyod A (c) What is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number eg-45 ne nathe (45) Rindanower to decimaliares e 125 For ultion names in devonal nincs mind in the the 13 Shm M 100222092 NguyI A Question 9 of 12 < > (b) 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 % -/15 (c) What is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $ Save for Later 13 Attempts: 0 of 1 used Submit Aw