all photos are apart of the required questions

THERE ARE 3 total questions

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Cuenca Company is considering the purchase of new equipment that will speed up the process for producing flash drives. The equipment will cost $7,200,000 and have a life of 5 years with no expected salvage value. The expected cash flows associated with the project follow: ollow: Cash Revenues Cash Expenses ear $8,000,000 1 $6,000,000 2 8,000,000 6,000,000 3 8,000,000 6,000,000 4 8,000,000 6,000,000 5 8,000,000 6,000,000 b. Kathy Shorts is evaluating an investment in an information system that will save $240,000 per year. She estimates that the system will last 10 years. The system will cost $1,248,000. Her company's cost of capital is 1090 c. Elmo Enterprises just announced that a new plant would be built in Helper, Utah. Elmo told its stockholders that the plant has an expected life of 15 years and an expected IRR equal to 25%. The cost of building the plant is >expected to be $2,880,000. Chapter 12 Homework 1. Calculate the IRR for Cuenca Company. The company's cost of capital is 16%. Round your answer to the nearest percent. 0 0 Should the new equipment pe purchased? 2. Calculate Kathy Short's IRR. Round your answer to the nearest percent. IRR. Round your answer to the nearest percent. 0 0 Should she acquire the new system? B. What should be Elmo Enterprises' expected annual cash flow from the plant? Round your answer to the nearest dollar