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To open a new store, Rundle Tire Company plans to invest $318,000 in equipment expected to have a six-year useful life and no salvage value. Rundle expects the new store to generate annual cash revenues of $321,000 and to incur annual cash operating expenses of $186,000. Rundle's average income tax rate is 40 percent. The company uses straight-line depreciation. Required Determine the expected annual net cash inflow from operations for each of the first four years after Rundle opens the new store. Note: Negative amounts should be indicated by a minus sign. Fanning Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $1,285,000 per year. The cost of the equipment is $7,260,536.56. Fanning expects it to have a 10year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of 11 percent and uses the straight-line method for depreciation. (PV of $1 and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required a. Calculate the internal rate of return of the investment opportunity. Note: Do not round intermediate calculations. b. Indicate whether the investment opportunity should be accepted. Velma and Keota (V\&K) is a partnership that is considering two alternative investment opportunities. The first investment opportunity will have a four-year useful life, will cost $14,903.73, and will generate expected cash inflows of $4,400 per year. The second investment is expected to have a useful life of five years, will cost $15,140.06, and will generate expected cash inflows of $4,200 per year. Assume that V\&K has the funds available to accept only one of the opportunities. (PV of $1 and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required a. Calculate the internal rate of return of each investment opportunity. Note: Do not round intermediate calculations. b. Based on the internal rates of return, which opportunity should V\&K select