need help on #3

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 $85,000. 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? $5,750 $56.250 $90750 $79,250 $85,000 2. In the worst-case scenario, Molly can sell the vehicles at the end of years for $31,000. 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? $38,750 $23,250 $31.000 $69.750 57.750 3. Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best case scenario of selling them for $85,000 will happen. Under this assumption, what is the internal Rate of Return (IRR) for Molly's delivery business? 191 100% 16.09 67 M