Bly's Construction is considering two separate projects, a new backhoe, and a dump truck, both for moving dirt in their construction business. The projects are independent. The cash cost for the backhoe is $50,100, and the dump truck is $45,530. The firms cost of capital (discount rate) is 12%. The five-year after-tax cash inflows are $14,500 for the backhoe and $14,200 for the truck. What is the NPV for both Projects?

For the last problem concerning Edelman Engineering, what is the internal rate of return (IRR) for the two projects?

What does the NPV and IRR results from the last two problems tell us about the two projects under consideration?