OTR Trucking Company runs a fleet of? long-haul trucks and has recently expanded into the? Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of $18 million and will generate annual cash inflows of ?$3.5 million per year for Years 1 through 3. In Year? 4, the project will provide a net negative cash flow of? $5.8 million due to anticipated expansion of and repairs to the facility. During Years 5 through? 10, the project will provide cash inflows of $1.8 million per year.

a. Calculate the? project's NPV and IRR where the discount rate is 11.2 percent. Is the project a worthwhile investment based on these two? measures? Why or why? not?

b. Calculate the? project's MIRR. Is the project a worthwhile investment based on this? measure? Why or why? not?