question 5

Oriole Corporation is reviewing an investment proposal. The initial cost is $105,400. Estimates of the book value of the investrnent 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. Oriole Corporation uses an 11% targetrate of return for newinvestment groposalsh Click here to ylew the foctor table. (a) What is the cash payback perlod for this proposal? (Round answer to 2 decimol ploces es, 1050 ) Cash payback period years What is the cash payback period for this proposal? (Round answer to 2 decimol ploces, eg.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 % (c) What is the net present value of the investment? (of the net present value is negative, use either a negative sign preceding the number eg 45 . or parentheses 8 (45). Round answer to 0 decimal ploces, es. 125. For calculation purposes, use 5 decimal ploces as displayed in the foctor table provided.) Net present value TABLE 3 Present Value of 1 TABt: 4 Present Value of an Annuify of 1 (n)