Question 1 Your colleague has been working with you on the valuation of Iris Inc. You've estimated the cost of equity (12%) and the cost of capital (8%) for the company and projected future cash flows together. You feel confident about those numbers. He forwarded his spreadsheet to get your final input: Year Cash flows to equity After tax interests Cash flows to the firm $525 $80 $605 2 $551 $85 $636 3 $579 $90 $669 1 Terminal Value $6,278 $12,529 Cost of Equity 12.00% Cost of capital 8.00% He arrived at a value of $6.401 for the equity and a value of $10.441 for the firm. Use the space below to give your colleague some feedback on his analysis