NPVS, IRRS, and MIRRS for Independent Projects Edelman Engineering is considering including tvwo pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects...


NPVS, IRRS, and MIRRS for Independent Projects<br>Edelman Engineering is considering including tvwo pieces of equipment, a truck and an overhead pulley system, in this year's capital budget.<br>The projects are independent. The cash outlay for the truck is $15,000 and that for the pulley system is $21,000. The firm's cost of capital is<br>11%. After-tax cash flows, including depreciation, are as follows:<br>Year<br>Truck<br>Pulley<br>$5,100<br>$7,500<br>2<br>5,100<br>7,500<br>3<br>5,100<br>7,500<br>4<br>5,100<br>7,500<br>5<br>5,100<br>7,500<br>Calculate the IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Truck:<br>%<br>What is the correct accept/reject decision for this project?<br>Based on the IRR, this project should be -Select-<br>Pulley:<br>%<br>What is the correct accept/reject decision for this project?<br>Based on the IRR, this project should be -Select-<br>Calculate the NPV for each project. Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to<br>enter negative values, if any.<br>Truck: $<br>What is the correct accept/reject decision for this project?<br>Based on the NPV, this project should be -Select-<br>Pulley: $<br>What is the correct accept/reject decision for this project?<br>Based on the NPV, this project should be -Select-<br>Calculate the MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Truck:<br>%<br>What is the correct accept/reject decision for this project?<br>Based on the MIRR, this project should be -Select-<br>Pulley:<br>%<br>What is the correct accept/reject decision for this project?<br>Based on the MIRR, this project should be -Select-<br>

Extracted text: NPVS, IRRS, and MIRRS for Independent Projects Edelman Engineering is considering including tvwo 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 $15,000 and that for the pulley system is $21,000. The firm's cost of capital is 11%. After-tax cash flows, including depreciation, are as follows: Year Truck Pulley $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 for each project. Do not round intermediate calculations. Round your answers to two decimal places. Truck: % What is the correct accept/reject decision for this project? Based on the IRR, this project should be -Select- Pulley: % What is the correct accept/reject decision for this project? Based on the IRR, this project should be -Select- Calculate the NPV for each project. Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any. Truck: $ What is the correct accept/reject decision for this project? Based on the NPV, this project should be -Select- Pulley: $ What is the correct accept/reject decision for this project? Based on the NPV, this project should be -Select- Calculate the MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Truck: % What is the correct accept/reject decision for this project? Based on the MIRR, this project should be -Select- Pulley: % What is the correct accept/reject decision for this project? Based on the MIRR, this project should be -Select-
Jun 08, 2022
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