Exercise 24-11 Your answer is partially correct. Try again. 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 Annual Net Income 0 1 Investment Proposal Initial Cost Annual and Book Value Cash Flows $105,800 69,800 $46,000 42,200 39,400 21,800 34,300 6,300 29,300 0 24,000 $10,000 2 11,800 13,900 3 4 13,800 17,700 5 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 2.591 Jyears (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, e.g. 10.50.) x Annual rate of return for the investment 27.33 || %