Molly is considering opening a Campus Delivery business. The initial investment for the business is $200,000, which includes purchasing delivery vehicles and other investments. For tax purposes, the projected salvage value of the delivery vehicles is $62,000.The government requires depreciating the vehicles using the straight-line method over the business's life of 5years. Molly is trying to estimate the net cashflows after tax for this business. She has already figured out that the business will generate anannual after-tax cash inflowof $54,000 from the operation. She now needs your help to estimate the net cash inflow that she will receive from selling the delivery vehicles at the end of 5years.

1.In the best-case scenario, Molly can sell the vehicles at the end of 5years for$97,000. Assuming the tax rate of 25%, what is the netafter-tax cashflowMolly will receive from selling her delivery vehicles at the end of 5years?

2.In the worst-case scenario, Molly can sell the vehicles at the end of 5years for$43,000.Assuming the tax rate of 25%, what is the netafter-tax cashflowMolly will receive from selling her delivery vehicles at the end of 5years?

3.Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best-case scenario of selling them for$97,000will happen. Under this assumption, what isthe Internal Rate of Return (IRR)for Molly's delivery business?