Indicate the correct accept-reject decision for each

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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 $17,100 and that for the pulley system is $22,430. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

Year truck pulley
1 $5100 $7500
2 5100 7500
3 5100 7500
4 5100 7500
5 5100 7500
Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept-reject decision for each.

 

Reference no: EM13292768

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