Jan Boothe is the CFO of the Laurelwood Sports Medicine Clinic. Boothe is trying to determine whether or not the clinic should move patient files and other items out of a spare room In the clinic and use the room for physiotherapy work. She has determined that it would require an Investment of $286,000 for equipment and related costs of getting the room ready for use. Based on receipts being generated from other rooms In the clinic, Boothe estimates that the new room would generate a net cash Inflow of $70,000 per year. The equipment purchased for the room would have a seven-year estimated useful life. Required: (Ignore Income taxes.) 1. Compute the IRR on the equipment for the new room to one decimal place. Verify your answer by computing the net present value of the equipment using the IRR you have computed as the discount rate. (Hint Use Microsoft Excel to calculate the discount factor(s).) (Do not round Intermediate calculations and PV factor. Round the final answers to the nearest whole dollar. Negative amount should be Indicated by a minus sign.) * Answer is complete but not entirely correct. Internal rate of return 16 % Net present value (1,155, 154 ) X 2. Assume that Boothe will not purchase the new equipment unless it promises a return of at least 14%. Compute the amount of annual cash Inflow that would provide this return on the $286,000 Investment. (Hint. Use Microsoft Excel to calculate the discount factor(s).) (Do not round Intermediate calculations and PV factor. Round the final answers to the nearest whole dollar.) x Answer is complete but not entirely correct. Annual cash inflow S 70,098 x