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 $17,100, and that for the pulley system is $22,430. The firm's cost of capital is 14%. After - tax cash flows, including depreciation, are as follows:

(1) Suppose the values for this problem change to:

Cash Outlay for Truck: $16,537

Cost of Capital: 13.1%

What is the net present value for the truck project? Round your solution to no decimals, i.e. you would enter $1,234,567.89 as 1234568..

(2) Suppose the values for this problem change to:

Cash Outlay for Truck: $16,656

Cost of Capital: 13.6%

What is the modified internal rate of return for the truck project? Round your solution to one decimal and omit the percentage sign, i.e. you would enter $12.3456% as 12.3.

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 7,500