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# NPVs, IRRs, and MIRRs for Independent ProjectsEdelman 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:

YearTruckPulley1\$5,100\$7,50025,1007,50035,1007,50045,1007,50055,1007,500

Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any.

Truck Pulley

Value Value

IRR  %- IRR%

NPV\$    NPV\$

MIRR  %- MRR%

Truck: Accept since NPV is positive IRR=14.99% NPV=... View the full answer

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