Solution-Calculate the internal rate of return

Calculate the internal rate of return

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Reference no: EM133112655

Hello, kindly help me solve this problem about the NPV, IRR, and MIRR of independent projects.

Edelman Engineering plans to include two pieces of equipment - a forklift and a pulley system - in the current year's capital budget. They are independent projects. The truck will cost $ 17,100, and the pulley system will cost $ 22,430. The cost of capital is 14%. Here are the after-tax cash flows, including depreciation:

Year	Forklift	Pulley system
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 internal rate of return, net present value, and modified internal rate of return for the projects and indicate the correct accept/reject decision for each.

Reference book:

Corporate Finance: A Focused Approach
by Ehrhardt and Brigham
Second Edition

Reference no: EM133112655

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Calculate the internal rate of return

Reference no: EM133112655

Reference no: EM133112655

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