Time left 2:26-22 Capital Budgeting (10 points) Big Box Stores is considering an investment proposal. The initial cost of the investment, the net cash flows for each year, and the net income for each year are presented below. There is no salvage value at the end of the investment's life. Year 1 2 3 Initial Cost $250,000 Annual Cash Flow Annual Net Income $68,000 $18,000 75,000 25,000 70,000 20,000 65,000 15,000 57,000 7,000 4 5 Big Box Stores uses a 10% target rate of return for new investment proposals. Answer the questions in the ext box below and Show your work. ote: the Present Value Tables are provided below this question (scroll down). A B I at is the cash payback period for this proposal? (2 pts) MacBook Air B 1) What is the cash payback period for this proposal? (2 pts) 2) What is the average annual net income for this investment? (1 pt) 3) What is the annual rate of return for this investment? (2 pts) 4) What is the net present value of this investment? (4 pts) Year Amount Factor Present Value Total 5) What is your recommendation to Bandon Company regarding this investment? (1pt) SLO MacBook Air Time left 2:26:28 e