PLEASE SEE ATTACHED SCREENSHOTS FOR PV TABLES

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
Year	Initial Cost and Book Value	Annual Cash Flows	Annual Net Income
0	$105,800
1	69,800	$46,000	$10,000
2	42,200	39,400	11,800
3	21,800	34,300	13,900
4	6,300	29,300	13,800
5	0	24,000	17,700

Drake 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, e.g. 10.50.)

Annual rate of return for the investment ___________________________________________

%

(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 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Net present value ________________________________

$

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