Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system,...

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Edelman Engineering is considering including two pieces ofequipment, a truck and an overhead pulley system, in this year'scapital budget. The projects are independent. The cash outlay forthe truck is $17,100, and that for the pulley system is $22,430.The firm's cost of capital is 14%. After-tax cash flows, includingdepreciation, are as follows: Year Truck Pulley 1 $5,100 $7,500 25,100 7,500 3 5,100 7,500 4 5,100 7,500 5 5,100 7,500 Calculate theIRR, the NPV, and the MIRR for each project, and indicate thecorrect accept/reject decision for each. Do not round intermediatecalculations. Round the monetary values to the nearest dollar andpercentage values to two decimal places. Use a minus sign to enternegative values, if any. Truck Pulley Value Decision Value DecisionIRR % % NPV $ $ MIRR % %

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TruckIRR is therate at which NPV 0IRR0149900953Year012345Cash flow stream1710051005100510051005100Discounting factor1114990113222721520482174840382010491Discounted cash flows project17100443516538569973354199291694632536694NPV Sumof discounted cash flowsNPV Truck 0000943534WhereDiscounting factor 1 IRRCorresponding period in yearsDiscounted CashflowCash flowstreamdiscounting factorIRR1499Acceptproject as IRR is more than discount ratePulleyIRR is therate at See Answer

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Edelman Engineering is considering including two pieces ofequipment, a truck and an overhead pulley system, in this year'scapital budget. The projects are independent. The cash outlay forthe truck is $17,100, and that for the pulley system is $22,430.The firm's cost of capital is 14%. After-tax cash flows, includingdepreciation, are as follows: Year Truck Pulley 1 $5,100 $7,500 25,100 7,500 3 5,100 7,500 4 5,100 7,500 5 5,100 7,500 Calculate theIRR, the NPV, and the MIRR for each project, and indicate thecorrect accept/reject decision for each. Do not round intermediatecalculations. Round the monetary values to the nearest dollar andpercentage values to two decimal places. Use a minus sign to enternegative values, if any. Truck Pulley Value Decision Value DecisionIRR % % NPV $ $ MIRR % %