Calculate the irr and npv for each project

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Parrish Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are not mutually exclusive. The cash outlay for the truck is $17,350, and that for the pulley system is $24,225. The firm's cost of capital is 15%.

After-tax cash flows are as follows:

YEAR.            TRUCK.           PULLEY
1.                  $5,300.         $8,100
2                   5,300          8,100
3                   5,300            8,100
4                    5,300           8,100
5                      5,300            8,100

Problem 1: Calculate the IRR and NPV for each project, and indicate the correct accept/reject decision for each.

Reference no: EM132787437

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