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the Drake Corporation is reviewing ani cash flows for each and the m ent proposal. The come for each year stand estimates of the book

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the Drake Corporation is reviewing ani cash flows for each and the m ent proposal. The come for each year stand estimates of the book of the the cash flow do d atne Investment Proposal 6,700 Dr Corpor a te for newment Cidhere to view PV What is the cash payback for this po s ted 10.50 Chata period 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. Year Investment Proposal Initial Cost Annual Annual and Book Cash Flows Net Income Value $105,600 69,300 $44,900 $8,600 42,500 40,600 13,800 20,600 35,200 13,300 6,700 29,600 15,700 24,200 17,500 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 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 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 es (45). Round answer to O 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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