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Part C: Calculate MIRR for Puley also. Its cut off from the picture. Thanks Problem 10-08 NPVS, IRRS, and MIRRS for Independent Projects Edelman Engineering
Part C: Calculate MIRR for Puley also. Its cut off from the picture.
Problem 10-08 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: Pulley Truck Year $7,500 $5,100 7,500 5,100 2 7,500 5,100 3 5,100 7,500 4 7,500 5 5,100 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? cept Pulley: What is the correct accept/reject decision for this project? Accept 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 Pulley: $ What is the correct accept/reject decision for this project? Reject c. Calculate the MIRR for each project. Round your answers to two decimal places. Truck: % Thanks
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