BE7.3 ( LO3),APAvajustgraduatedfromcollege.Sincesheisstartingherownbusiness,itstimetoupgradefrom her clunker to a reliable vehicle. Ava has the option to purchase a new car for her business at a cost of $25,000 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $8,000 over the life of the car. Determine the simple payback period and the IRR for this imvestment. Ava expects her business income to be subject to a 30% tax rate. Compare two inestments using the discounted pagback period