View Policies Current Attempt in Progress Bonita Corporation is reviewing an investment proposal. The initial cost is $107,400. Estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the nat 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 assumed to equal its book value. There would be no salvage value at the end of the investment's life Year 1 2 3 Investment Proposal Book Annual Value Cash Flows $70,300 $45,500 43,000 40,300 22,000 36,000 8.700 29,200 0 26,210 Annual Net Income $8,400 13,000 15.000 15,900 17,510 4 5 Bonita Corporation uses an 115 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, eg 10.50.) Cash payback period (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 nat present value of the investment? if the net present value is negative, use either a negative sign preceding the number eg -45 or parentheseses (45. Round answer to decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided Net present value $