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Ballabio Corporation is evaluating the purchase of a machinery system. The price of the system is $ 1 7 1 , 6 0 0 .

Ballabio Corporation is evaluating the purchase of a machinery system. The price of the system is $171,600. The system is fully depreciated at the time of purchase. The system would be sold after three years for $101,000. The system requires a $7,250 increase in net operating working capital. The new system would increase the revenues by $252,000 and the pretax cost by $200,000 per year. The company tax rate is 25 percent, and the WACC is 9.25 percent. What is the NPV of the project? What is MIRR of the project?
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