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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 $92,000. Assuming the tax rate of 30%, what is the net after-tax cashflow Molly will recelve from selling her delivery vehicles at the end of 5 years? $101,000 $9,000 $92,000 $53,000 $83,000 2. In the worst-case scenario, Molly can sell the vehicles at the end of 5 years for $38,000. Assuming the tax rate of 30%, what the net after-tax cashflow Molly will receive from selling her delivery vehicles at the end of 5 years? $30,800 $7,200 $69,200 $38,000 $45,200 3. Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best-case scenario of selling them for $92,000 will happen. Under this assumption, what is the Internal Rate of Return (IRR) for Molly's delivery business? 18.98% 16.4% 20.4% 11.95% 19.7%

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