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 $$15,000,$ and that for the pulley system is $$21,000.$ The firm's cost of capital is $11\%.$ 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, the NPV$,$ and the MIRR for each project, and indicate the correct accept$/$reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any.

Truck Pulley

Value Decision Value Decision

IRR

$\%$

Accept

$\%$

Accept

NPV $

Accept

$

Accept

MIRR

$\%$

Accept

$\%$

Accept