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Use the following data to answer the next THREE questions: Molly is considering opening a Campus Delivery business. The initial investment for the business is

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Use the following data to answer the next THREE questions: Molly is considering opening a Campus Delivery business. The initial investment for the business is $200,000, which includes purchasing delivery vehicles and other investments. For tax purposes, the projected salvage value of the delivery vehicles is $62,000 The government requires depreciating the vehicles using the straight-line method over the business's life of 5 years. Molly is trying to estimate the net cashflows after tax for this business. She has already figured out that the business will generate an annual after-tax cash inflow of $54,000 from the operation. She now needs your help to estimate the net cash Inflow that she will receive from selling the delivery vehicles at the end of 5 years, 1. In the best-case scenario, Molly can sell the vehicles at the end of 5 years for $84,000. Assuming the tax rate of 30%, what is the net after-tax cashflow Molly will receive from selling her delivery vehicles at the end of 5 years? O $90,600 $55,400 $6,600 O $84,000 O $77,400 2. In the worst case scenario, Molly can sell the vehicles at the end of 5 years for $30,000. Assuming the tax rate of 30%, what is the net after tax cashflow Molly will receive from selling her delivery vehicles at the end of 5 years? O $39,600 O $30,000 O $71,600 O $9,500 O $20,400 3. Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best-case scenario of selling them for $84,000 will happen. Under this assumption, what is the Internal Rate of Return (IRR) for Molly's delivery business? O 19.59% 10 57

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