Q. V{18 marks Required Answer the following independent questions. Support your answers with clearly identified formulas and computation. a. A company is considering purchasing factory equipment that costs $400,000 and is estimated to have no salvage value at the end of its 5-year useful life. If the equipment is purchased, annual revenues are expected to be $150,000 and annual operating expenses exclusive of depreciation expense are expected to be $25,000. The straight-line method of depreciation would be used. Calculate the cash payback period on the equipment b. Consider the following data (and ignore the impact of income taxes): Initial cost of equipment $ 962,000 Annual cash inflows $ 191,720 Salvage value $ 0 Estimated life 10 years Calculate the internal rate of return on this investment