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.

In the best$-$case scenario, Molly can sell the vehicles at the end of $5$ years for $$86,000.$ 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?

$$7,200$

$$93,200$

$$54,800$

$$86,000$

$$78,800$

In the worst$-$case scenario, Molly can sell the vehicles at the end of $5$ years for $$32,000.$ 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?

$$41,000$

$$9,000$

$$23,000$

$$71,000$

$$32,000$

Molly is very optimistic about the sale of the delivery vehicles, and thinks that the best$-$case scenario of selling them for $$86,000$ will happen. Under this assumption, what is the Internal Rate of Return $($IRR$)$ for Molly's delivery business? $19\mathrm{.}22\%$

$11\mathrm{.}75\%$

$19\mathrm{.}8\%$

$18\mathrm{.}63\%$

$16\mathrm{.}56\%$