Cupcakes-R-Us, Inc. is reviewing all available information regarding the future use of its baking equipment, which it intends to use for the foreseeable future. (Click the icon to view additional information.) Requirement a. Compute the carrying value of Cupcakes-R-Us's equipment. The carrying value of the baking equipment at the end of two years is 360,000 Requirement b. Compute the present value of expected cash flows under Estimate 1 and Estimate 2. Assume that the cost of capital is 8%. For each estimate, is the present value of estimated future cash flows higher or lower than the equipment's carrying value? Begin by calculating the present value (PV) of estimated future cash flows for Estimate 1. In the following steps, calculate the PV of estimated future cash flows for Estimate 2, and then identify if the present value of the estimated future cash flows is higher or lower than the equipment's carrying value. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX. Round intermediary calculations and your final answers to the nearest whole dollar.) Car S