Calculate the irr-the npv and the mirr for each project

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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                      $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 IRR, the NPV, and the MIRR for each project, and indicate the correct accept–reject decision for each.

Please show equations on how to work these problems as well as how to put them in the calculator.

Reference no: EM132023371

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