Bee Sites 267 A Hide Time Remaining A Questions 1 - 6 are all based on the following information. Regina Redbird, the CEO of New Mexico Numismatic Scanning Corporation, believes that the firm could create additional value by adding philatelic scanning equipment to its product mix. Machinery used in producing the philatelic scanners would cost $4,750,000. According to Ms. Redbird's projections, the subsequent net cash flows the company would generate for the investors if it entered the philatelic scanner business would be $640,000 per year for 18 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type is 10.5%. QUESTION: PLEASE REFER TO THE ATACHMENT TO QUESTION 1 IN ANSWERING. Which of the five equations shown would you use in computing the philatelic equipment project's INTERNAL RATE OF RETURN (IRR)? Exam Equations IRR.pdf 86 KB O A. Equation 1 O B. Equation 2 OC. Equation 3 OD. Equation 4 E. Equation 5 Reset Selection W 8:42 6/26/ In answering question 1 in Part B of the exam, "Which of the five equations shown would you use in computing the project's internal rate of return (IRR)?" please refer to the following five equations. EQUATION 1: $4,750,000+ $640,000 HIRR) IRR = $640,000 EQUATION 2: 1-1+IRR) -$640,000+ $4,750,000 = $0 IRR 1-GIRR EQUATION 3: -$4,750,000+ $640,000 $4,750,000 IRR 1-(+RR EQUATION 4: $4,750,000 $640,000 IRR EQUATION 5: $4,750,000 + S640,000 IRR IRR SO w