1. Edelman Engineering is considering including two pieces of equipment, a truck, and an overhead pulley system, in this years capital budget. The cash outlay for the truck is $17,100, and that for the pulley system is $22,430. The firms 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, the Payback Period, and the Discounted Payback Period for each project, and indicate the correct accept/reject decision for each if:

1. If the projects are independent, what decision can be made?
2. If the projects are mutually exclusive, what decision can be made?

NB: You shall use Excel and any Excel format and function that shall help you in the computation of decision-making.

Solution Template

			Independent Project	Mutually Exclusive Project
	Truck	Pulley	Independent - Decision	Reason	Mutually Exclusive Decision	Reason
IRR
NPV
Payback Period
Discounted Payback Period