Questions 14 -20 are all based on the following information Mr. Woodridge, the CEO of Woodstock Wood Chippers, Inc. believes that the firm could create additional value by adding stump grinders to its product mix Machinery used in producing the stump grinders would cost $16.500.000. According to Woodridge's projections, the subsequent niet cash flows the company would generate for the investors if it entered the stump grinder business would be $2.280,000 per year for 12 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type is 8.6% QUESTION: PLEASE REFER TO THE ATACHMENT TO QUESTION 20 IN ANSWERING. Which of the five equations shown would you use in computing the project's INTERNAL RATE OF RETURN (RRP Q2. Attachment Form 3.9.20.00! 87 ka A Equation 1 B. Equation 2 Equation 3 D.Equation 4 Equations 12 a. EQUATION 1: $2,280,000 + $16,500,000 1+IRR IRR = $0 (1-6+IRR)** b. EQUATION 2: -- $16,500,000+ $2,280,000 1+IRR IRR $2,280,000 c. EQUATION 3: $16,500,000 14IRR IRR 1) $2.280,000 d. EQUATION 4: $16,500,000+ $2,280,000 1 IRR IRR "). - $0 12 1 IRR e. EQUATION 5: -- $16,500,000+ $2,280,000 $16,500,000