Suppose the CEO of your company asked you to help him in deciding whether he should invest in the capital budgeting project. He provided the following information which he gathered with the help of his team.

The equipment which is needed for the project costing $4,000 and it needs another $700 to make it ready for special use. The project life is 4 years. The machine could be used for the project life and then it would be sold for $500 in the terminal year of the project. CEO recommended MACRS method for depreciation and the applicable percentages are 33%, 45%, 15% and 7% in the year 1, 2, 3 and 4 respectively. The Company maintains working capital as of 15% of next years sale. The following table contains the information which could be used for cash flow estimation:

Unis Sold Year 1	1,000
% Increase in units sold after year 1	4%
Price Per unit	7
% Increase in price after year 1	2%
VC per unit	4
% Increase in VC after year 1	2%
Fixed cost	1500
% Increase in fixed cost after year 1	2%

Moreover, his team suggest that the yield on a 3-month T bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. The after-tax cost of debt for the Company is 5.2%. The beta for the Company is 0.8. The CEO wants to finance this project with 60% equity and 40% debt. The tax rate for the Company is 40%. The CEO wants you to suggest him whether he should invest in the project by using different capital budgeting techniques i.e. NPV, IRR, MIRR, PI and Discounted Payback Period.