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
2	5,100		7,500
3	5,100		7,500
4	5,100		7,500
5	5,100		7,500

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

Truck: _____% What is the correct accept/reject decision for this project? Accept or Reject?

Pulley: ______% What is the correct accept/reject decision for this project? Accept or Reject?

B. 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? Accept or Reject?

Pulley: $ ________ What is the correct accept/reject decision for this project? Accept or Reject?

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

Truck: _____% What is the correct accept/reject decision for this project? Accept or Reject?

Pulley: ____% What is the correct accept/reject decision for this project? Accept or Reject?