8. Edelman Engineering is considering including two pieces of equipment, a truck, and an overhead...
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8. Edelman Engineering is considering including two pieces of equipment, a truck, and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $15,000, and that for the pulley system is $21,000. The firm's cost of capital is 11%. After-tax cash flows, including depreciation, are as follows:
| Year | Truck | Pulley | ||
| 1 | $5,100 | $7,500 | ||
| 2 | 5,100 | 7,500 | ||
| 3 | 5,100 | 7,500 | ||
| 4 | 5,100 | 7,500 | ||
| 5 | 5,100 | 7,500 | ||
Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any.
| Truck | Pulley | ||||
| Value | Decision | Value | Decision | ||
| IRR | __% | (select one) Accept/Reject | __ % | (select one)Accept/Reject | |
| NPV | $__ | (select one) Accept/Reject | $ __ | (select one) Accept/Reject | |
| MIRR | __% | (select one) Accept/Reject | __% | (select one)Accept/Reject | |
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