Solution-Calculate the IRR and NPV for each project

Calculate the IRR and NPV for each project

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Reference no: EM132807007

Question - 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

Required - Calculate the IRR and NPV for each project, and indicate the correct accept/reject decision for each.

Reference no: EM132807007

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Calculate the IRR and NPV for each project

Reference no: EM132807007

Reference no: EM132807007

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