Internal Rate of Return Follow the format shown in Exhibit 14B-1 and Exhibit 148-2 as you complete the requirements below 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: Year Cash Revenues Cash Expenses $6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 $8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 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 l0%. 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 s 2,880,000. Required: 1 Calculate the IRR for Cuenca Company. The company's cost of capital is 6%. Round your answer to the nearest perm 945 PM