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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:

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

find out the IRR, the NPV, and the MIRR for each project, and indicate the correct accept-reject decision for each.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M952815

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