Pharoah Corporation is reviewing an investment proposal. The schedule below presents 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. All cash flows are assumed to take place at the end of the year. The investment's salvage value 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 Year Initial Cost and Book Value Annual Cash Flows Annual Net Income 0 $104,000 1 69,300 $49,900 $14,200 2 41,800 44,000 17,800 3 21,900 39,000 19,600 4 6,000 34,500 20,900 5 0 30,300 23,900