It is found in Chapter 5-1, in a case in the small room before heading up the stairs after the first Licker encounter.
It has a starting firepower of 90, reload speed of 2.83, and a capacity of 30. Fully upgraded, it has a firepower of 250, reload speed of 2.55, and a capacity of 50.
It has the highest firepower and the fastest rate of fire of all the "machine guns" in the game, but lacks any kind of exclusive upgrade and also has the smallest capacity, the slowest reload speed and the strongest recoil. The later makes it difficult to place accurate shots with repeated fire at medium to long ranges.
Sheva uses the weapon in her Clubbin' costume in the Mercenaries minigame. This is also part of Excella's load out in the Mercenaries Reunion.
It takes a total of ₦77,000 to buy and fully upgrade the AK-74 or just ₦73,000 to fully upgrade if the player takes the one available in-game.
Resident Evil: The Mercenaries 3DEdit
Like many other guns from Resident Evil 5, this weapon was ported into the Mercenaries 3D, where it is used by HUNK.