2. A $125,000 investment in a new type of equipment will allow a veterinarian to perform diagnostic tests for her clients. The equipment is expected to have a life of five years, with no salvage value. Use the Internal Rate of Return (IRR) method of capital budgeting to evaluate whether or not she should invest in this equipment. The equipment will yield the following net cash flows per year. Assume a WACC of 20 percent. CF. - S-125,000 CF, - $40,000 CF, - $40,000 CF, - $40,000 CF, $40,000 CF, - $40,000