You have been asked by the president of your company to evaluate the proposed acquisition of a new project for the firm. The equipment needed for this expansion project would cost $135,000. This equipment has a 5-year life and would be depreciated using straight-line depreciation to zero by the end of year 5. It will be sold for $40,000 at the end of year 5. The use of the new equipment would require an increase in net working capital of $5,000. There would be an increase in sales of $62,000 per year and the new project would require an annual cash operating expense of $30,000. At the end of year 5, the firm will recover the net working capital of $5,000. The firm's marginal tax rate is 30%. What is the net present value (NPV) for the project if the cost of capital is 8%? Would you accept the project under the NPV rule? 1) Accept the project since the NPV is $4,237 2) Accept the project since the NPV is $4,536 . 3) Accept the project since the NPV is $10,536 4) Reject the project since the NPV is $4,536 5) Reject the project since the NPV is -$10,536 What is the modified internal rate of return (MIRR) for the project if the cost of capital is 8%? Would you accept the project under the MIRR rule? 1) Accept the project since the MIRR is 14.04% 2) Accept the project since the MIRR is 12.94% 3) Accept the project since the MIRR is 8.65% 4) Reject the pngject since the MIRR is 14.04% 5) Reject the project since the MIRR is 12.94%