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 $19,000 and that for the pulley system is $20,000. The firm's cost of capital is 12%. 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 for each project. Do not round intermediate calculations. Round your answers to two decimal places.

Truck: % What is the correct accept/reject decision for this project? Based on the IRR, this project should be -Select-acceptedrejectedItem 2 .

Pulley: % What is the correct accept/reject decision for this project? Based on the IRR, this project should be -Select-acceptedrejectedItem 4 .

Calculate the NPV for each project. Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any.

Truck: $ What is the correct accept/reject decision for this project? Based on the NPV, this project should be -Select-acceptedrejectedItem 6 .

Pulley: $ What is the correct accept/reject decision for this project? Based on the NPV, this project should be -Select-acceptedrejectedItem 8 .

Calculate the MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.

Truck: % What is the correct accept/reject decision for this project? Based on the MIRR, this project should be -Select-acceptedrejectedItem 10 .

Pulley: % What is the correct accept/reject decision for this project? Based on the MIRR, this project should be -Select-acceptedrejectedItem 12 .