Required information [The following information applies to the questions displayed below.) Metro Car Washes, Inc. is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. 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. Initial Cost Annual Net After-Tax Annual Year and Book Value Cash Flows Net Income @ $405,000 270,000 $170,000 $35,000 162,000 145,000 37,000 81,000 120,000 39,000 27,000 95,000 41,000 70,000 1 2 3 5 43,000 Management uses a 12 percent after-tax target rate of return for new investment proposals. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) 'equired: Compute the project's payback period. Assume that the cash flows in years 1 through 5 occur uniformly throughout each year. (Round your answer to 2 decimal places.) years Payback period Calculate the accounting rate of return on the investment proposal. Base your calculation on the initial cost of the investment (Round your "Percentage" answer to 2 decimal place (i.e., 1234 should be entered as 12.3).) Accounting rate of return . Compute the proposal's net present value. Net present value