NPV and IRR, Mutually Exclusive Projects

For discount factors use Exhibit $12$B$-1$ and Exhibit $12$B$-2.$

Hunt Inc. intends to invest in one of two competing types of computer$-$aided manufacturing equipment: CAM X and CAM Y$.$ Both CAM X and CAM Y models have a

project life of $10$ years. The purchase price of the CAM X model is $$3,600,000,$ and it has a net annual after$-$tax cash inflow of $$900,000.$ The CAM $Y$ model is more

expensive, selling for $$4,200,000,$ but it will produce a net annual after$-$tax cash inflow of $$1,050,000.$ The cost of capital for the company is $10\%.$

Required:

Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar.

CAM X: $

CAM Y: $

Which model would you recommend using NPV$?$

CA

Select the IRR for each project.

CAM $X$: $20\%-25\%$

CAM Y:

Which model would you recommend using IRR?