Question 4 10 pts Bonnie has the opportunity to purchase a large Victorian home for $650,000. She will need to spend additional $125,000 to renovate and convert to a bed and breakfast. She estimates the following after tax cashflows. Year 6 cashflow includes the terminal value of the venture. % a. The Internal Rate of Return (IRR) of the venture is the venture b. If Bonnie's cost of capital is 12%, Bonnie will accept/reject) Year Cash-flows 1 80,000 90.000 2 3 105,000 4 112,000 5 126,000 6 1.050,000 10 pts Question 5