Question 5: Internal Rate of Return with Uneven Cash Flows (25 marks) Palermo Pizzeria Pty Ltd is considering expanding operations by establishing a delivery business. This will require the purchase of an oven that will cost $50,000 including installation. The oven is expected to last 5 years, have a $5,000 residual value, and will be depreciated using the straightline method. Cash flows associated with the delivery business are as follows: 7 In addition to the above, there are tax consequences related to the new business, and the company's tax rate is 40 percent. Required: 1. Estimate the cash flows associated with this business project (11 marks) 2. Calculate the internal rate of return for the delivery business. (Hint: Try a range of rates between 8 percent and 15 percent.) (11 marks) 3. Should Palermo Pizzeria invest in the delivery business if the company's required rate of return is 10 percent