Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in

Question:

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 percent. After-tax cash flows, including depreciation, are as follows:

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

Truck Year Pulley $5,100 $7,500 5,100 7,500 5,100 7,500 7,500 5,100 5,100 7,500

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...