Question
NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment,...
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 $19,000 and that for the pulley system is $20,000. The firm's cost of capital is 12%. 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 | ||
Calculate the IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Truck: %
What is the correct accept/reject decision for this project?
Based on the IRR, this project should be
-Select-acceptedrejectedItem 2 .
Pulley: %
What is the correct accept/reject decision for this project?
Based on the IRR, this project should be
-Select-acceptedrejectedItem 4 .
Calculate the NPV for each project. Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any.
Truck: $
What is the correct accept/reject decision for this project?
Based on the NPV, this project should be
-Select-acceptedrejectedItem 6 .
Pulley: $
What is the correct accept/reject decision for this project?
Based on the NPV, this project should be
-Select-acceptedrejectedItem 8 .
Calculate the MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Truck: %
What is the correct accept/reject decision for this project?
Based on the MIRR, this project should be
-Select-acceptedrejectedItem 10 .
Pulley: %
What is the correct accept/reject decision for this project?
Based on the MIRR, this project should be
-Select-acceptedrejectedItem 12 .
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NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment,...
NPVs, IRRs, and MIRRs for Independent Projects
Edelman Engineering is considering including two pieces of
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capital budget. The projects are independent. The cash outlay for
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truck and an overhead pulley system, in this year's capital budget.
The projects are independent. The cash outlay for the truck is
$19,000 and that for the pulley system is $20,000. The firm's cost
of capital is 12%. After-tax cash flows, including depreciation,
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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 $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...
NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment,...
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14%. After-tax cash flows, including depreciation, are as
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5,100
7,500
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7,500
4
5,100
7,500
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3
5,100
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Year
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Year
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