Your company is going to buy a new equipment that falls into 4-year straight-line depreciation to $200,000. The equipment costs $700,000 and its installation costs $50,000. Its shipping costs $50,000 and the research to finalize the equipment type cost $50,000. This equipment has operating costs of $200,000 for each year for 4 years. The project requires $150,000 in net working capital at the beginning of the project which will be recovered in the final year. The equipment can be sold in year 4 for $250,000. The firm's tax rate is 40% and its required return is 10%.

What is the final CFs of the project?

What is the NPV of the project? ___________

What is the IRR of the project? ___________

What is the MIRR of the project? ___________

Do you advise to accept the project? (ACCEPT)(REJECT)