(a)What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 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)yearsWhat is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number eg. -45or parentheses eg (45). Round answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factortable provided.)Net present value $ Drake Corporation is reviewing an investment proposal. The initial cost is $105,700. Estimates of the book value of the investment atthe 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 cashflows 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 equalits book value. There would be no salvage value at the end of the investment's life.Year1234Investment ProposalBook Value$70,50042,40020,6006,800AnnualAnnualCash Flows Net Income$9,70011.100,$44,90039.20036,00029,10025,20514,20015,30018,405Drake Corporation uses an 11% target rate of return for new investment proposals.Click here to view the factor table.SU

Cash Payback period = 2.60 years YearCash FlowAccumulated Cash…

What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 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%) Annuai ate of return for the investment years (c) 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 eg (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 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%) Annuai ate of return for the investment years (c) 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 eg (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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