follow the format shown in exhibit 12b.1 and exhibit 12b.2 as you complete the requirements below. each of the following scenarios is independent. assume that all cash flows are after-tax cash flows. cuenca company is considering the purchase of new equipment that will speed up the process for producing flash drives. the equipment will cost $7,200,000 and have a life of 5 years with no expected salvage value. the expected cash flows associated with the project follow: year cash revenues cash expenses 1 $8,000,000 $6,000,000 2 8,000,000 6,000,000 3 8,000,000 6,000,000 4 8,000,000 6,000,000 5 8,000,000 6,000,000 kathy shorts is evaluating an investment in an information system that will save $240,000 per year. she estimates that the system will last 10 years. the system will cost $1,248,000. her company's cost of capital is 10%. elmo enterprises just announced that a new plant would be built in helper, utah. elmo told its stockholders that the plant has an expected life of 15 years and an expected irr equal to 25%. the cost of building the plant is expected to be $2,880,000. required: 1. calculate the irr for cuenca company. the company's cost of capital is 16%. round your answer to the nearest percent. fill in the blank 1 % should the new equipment be purchased? 2. calculate kathy short's irr. round your answer to the nearest percent. fill in the blank 3 % should she acquire the new system? 3. what should be elmo enterprises' expected annual cash flow from the plant? round your answer to the nearest dollar. $fill in the blank 5 check my work