Merton Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company's cash outflow for operating expenses by $1, 289,000 per year. The cost of the equipment is $8, 782, 848.99. Merton expects it to have a 12-year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of 15 percent and uses the straight-line method for depreciation. (PV of $1 and PVA of $1) Required a. Calculate the internal rate of return of the investment opportunity. To open a new store, Linton Tire Company plans to invest $357,000 in equipment expected to have a seven -year useful life and no salvage value. Linton expects the new store to generate annual cash revenues of $317,000 and to incur annual cash operating expenses of $191,000. Linton's average income tax rate is 35 percent. The company uses straight-line depreciation. Required Determine the expected annual net cash inflow/outflow for each of the first four years after Linton opens the new store