Pettijohn Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this years 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 firms cost of capital is 14 percent. After-tax cash flows, are as follows:

Year Truck Pulley

1 5100 7500

2 5100 7500

3 5100 7500

4 5100 7500

5 5100 7500

Calculate :

a- Payback period?

b-IRR?

c-NPV, for each project?

d-indicate the correct accept/reject decision for each?