Calculate the irr and the npv of company

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Problem: The company division you work in is considering two investment projects, each of which requires an up-front expenditure of $50000. The firm's cost of capital is 12%. You estimate that the investments will produce the following net cash flows:

Truck:

Year 1 = 14750

Year 2 = 14750

Year 3 = 14750

Yrar 4 = 14750

Year 5 = 14750

Pully:

Year 1 = 29500

Year 2 = 29500

Year 3 = 29500

Year 4 = 29500

Year 5 = 29500

Calculate the IRR and the NPV for each project and indicate the correct Accept/ Reject decision for each project.

Reference no: EM132421967

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