NPVs$,$ IRRs, and MIRRs for Independent Projects

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 $$18,000,$ and that for the pulley system is $$22,000.$ The firm's cost of capital is $14\%.$ After$-$tax cash flows, including depreciation, are as follows:

Year Truck Pulley

$1$ $$5,100$ $$7,500$

$25,1007,500$

$35,1007,500$

$45,1007,500$

$55,1007,500$

Calculate the IRR for each project. Round your answers to two decimal places.

Truck:

$\%$

What is the correct accept$/$reject decision for this project?

Reject

Pulley:

$\%$

What is the correct accept$/$reject decision for this project?

Reject

Calculate the NPV for each project. Round your answers to the nearest dollar, if necessary. Enter each answer as a whole number. For example, do not enter $1,000,000$ as $1$ million.

Truck: $

What is the correct accept$/$reject decision for this project?

Reject

Pulley: $

What is the correct accept$/$reject decision for this project?

Accept

Calculate the MIRR for each project. Round your answers to two decimal places.

Truck:

$\%$

What is the correct accept$/$reject decision for this project?

Reject

Pulley:

$\%$

What is the correct accept$/$reject decision for this project?

Accept