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Calculate the npv-irr and the mirr

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Class, Evans Engineering, Inc. 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 $22,400, and that for the pulley system is $28,460. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

Year

Truck

Pulley

1

$ 6,800

$7,500

2

6,800

7,500

3

6,800

7,500

4

6,800

7,500

5

6,800

7,500

Required: Calculate the NPV, IRR and the MIRR and indicate whether the project should be accepted or rejected.

Reference no: EM133072396

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