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NPVs, IRRs, and MIRRsfor Independent Projects

Edelman Engineering isconsidering including two pieces of equipment, a truck and anoverhead pulley system, in this year's capital budget. The projectsare independent. The cash outlay for the truck is $17,100 and thatfor the pulley system is $22,430. The firm's cost of capital is14%. After-tax cash flows, including depreciation, are asfollows:

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

1. Calculate the IRR foreach project. Round your answers to two decimal places.

   Truck:   %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley:    %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

2. 
   

3. Calculate the NPV foreach project. Round your answers to the nearest dollar, ifnecessary. Enter each answer as a whole number. For example, do notenter 1,000,000 as 1 million.

   Truck: $
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley: $
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

4. 
   

5. Calculate the MIRR foreach project. Round your answers to two decimal places.

   Truck: %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley:    %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject