Edelman Engineering is considering a piece of equipment in this year’s capital budget. The cash outlay for the truck is -$21,400. The firm’s cost of capital, WACC, is 14 percent. The expected cash inflows are as follows:
YEAR
Free Cash Flow
1
$5,500
2
$5,500
3
$5,500
4
$5,500
5
$7,500
Calculate the NPV.
Calculate the MIRR.