we u TUNTUwing uaua cu crver HERE IFREE quesuuns. Molly is...
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we u TUNTUwing uaua cu crver HERE IFREE quesuuns. 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 $87,000. Assuming the tax rate of 25%, what is the net after-tax cashflow Molly will receive from selling her delivery vehicles at the end of 5 years? O $87,000 O $80,750 O $6.250 O $55,750 $93,250 2. In the worst-case scenario, Molly can sell the vehicles at the end of 5 years for $33,000. Assuming the tax rate of 25%, what is the net after-tax cashflow Molly will receive from selling her delivery vehicles at the end of 5 years? $69,250 $25.750 O $33,000 $7,250 $40,250 3. Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best-case scenario of selling them for $87,000 will happen. Under this assumption, what is the Internal Rate of Return (IRR) for Molly's delivery business? O 18.8% 19.896 11,64% 16,65% 19.3%
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