9. Erlanger Construction is considering the following project. The project will generate the following subsequent cash lows: t 1 $400 12-$500 13 $200 The project's payback is 1.5 years (i.e, initial cost is $650), and it has a cost of capital of 10 percent. What is the project's modified internal rate of returm (MIRR)? 14.75% 19.65% 21.54% 23.82% 26.09% b. c. Multiple part: 0 10-011) The following information applics to the next two problems. Show your work You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck The company already spent $15,000 (i.e, sunk cost) in last year to improve the production line site. The truck's basic price is $90,000, and it will cost another $10,000 to modify it for special use by your firm. Use of the truck will require an increase in net operating working capital (spare parts of inventory) of $25,000. The truck falls into the MACRS 3 year class, and it will be sold after three years for $20,000 (salvage value). The track will increase the sale by $200,000, and the cost of all expenses will be 40% of sales. The firm's marginal tax rate is 40 percent. Dep MACRS Year 1 Year 2 45% Year3 Year 4 10. What is the operating cash flow in Year 1? a. $45,000 $52,200 $85,200 $98,000 e. $120,800 11 What is the terminal (only portion) cash flow in year 37 $29,800 $39,800 .$14,800 d. $19,800 e. $19,800