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 $10$ percent. The expected cash inflows are as follows:

YEAR Free Cash Flow

$1$ $$5,500$

$2$ $$5,500$

$3$ $$5,500$

$4$ $$5,500$

$5$ $$5,500$

$6$ $$7,500$

a$.$ Calculate the NPV$.$ Do you accept or reject?

b$.$ Calculate the MIRR. Do your accept or reject?