a) The cash payback period for Crane Corporation's investment proposal is 3 years.
b) The annual rate of return for the investment is as follows:
Year 1 = 10% ($10,700/$104,500 x 100)
Year 2 = 19% ($13,100/$69,300 x 100)
Year 3 = 33% ($14,000/$42,100 x 100)
Year 4 = 82.5% ($17,400/$21,100 x 100)
Year 5 = 232% ($17,900/$7,700 x 100)
c) The net present value of the investment by Crane Corporation is $30,643.
<h3>Data and Calculations:</h3>
Target rate of return = 11%
Year   Initial Cost and Book Value  Annual Cash      Annual Net 
                                                                Flows                Income
0                 $104,500
1                                        69,300        $45,900            $10,700
2                                        42,100          40,300               13,100
3                                         21,100         35,000               14,000
4                                         7,700          30,800               17,400
5                                               0          25,600                17,900
The cash payback period is <u>3 years</u> ($104,500 - $45,900 - $40,300 - $35,000).
<h3>Net Present Value:</h3>
Year   Annual Cash Flows    PV Factor        Present Value
0               -$104,500                     1                 -$104,500
1                  $45,900                0.901                  $41,356
2                 $40,300                0.812                   32,724
3                 $35,000                 0.731                  25,585
4                 $30,800                0.659                 20,297
5                $25,600                 0.593                   15,181
Net Present value =                                        $30.643
Learn more about the payback period and NPV at brainly.com/question/16999673
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