Question 3 of 4 < > 2.5/3.75 Blossom Corporation is reviewing an investment proposal. The initial cost is $103,400. 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 $69,000 $44,000 $9,600 2 41,000 39,000 11,000 3 20,000 34,000 13,000 4 6.000 29,000 15,000 5 0 24,610 18.610 Blossom Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table. (a) Q Search PRE OL (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) 13 % Q Search 11 L PRE