Another firm is evaluating investment in specialized equipment that cost $300 million and is projected to generate after-tax and pre-leverage cash flow of $80 million per year for five years. The firms after-tax cost of capital is approximately 5.00%. Determine each of the following capital budgeting metrics and indicate whether and why the equipment should be purchased (or not) by each metric. Reinvest cash flow for the MIRR model at the cost of capital.

1) Payback (not discounted payback)

2) NPV

3) IRR

4) MIRR