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 | 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
.
Pulley: %
What is the correct accept/reject decision for this project?
Based on the IRR, this project should be
.
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
.
Pulley: $
What is the correct accept/reject decision for this project?
Based on the NPV, this project should be
.
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
.
Pulley: %
What is the correct accept/reject decision for this project?
Based on the MIRR, this project should be
.
Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this yea...
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 7,500 Calculate the IRR for each project....
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 Calculate the IRR for each project....
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 $18,000, and that for the pulley system is $22,000. 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 Calculate the IRR, the NPV, and...
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 $18,000 and that for the pulley system is $22,000. 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...
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 puley system is $20,000. The firm's cost of capitals 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 5,100...
*accept/reject decision for each NPVS IRRs and MIRRs for Independent Projects - 3 points 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...
for the truck $17,100 and that for the pulley system is $27,430. The firm's cost of capital is Problem 10-09 NPVS, IRRS, and HTRRS for Independent Projects Fidelman Engineering is considering including two pieces of equlament, a truck and an overhead pullay system, In this year's capital budget. The projects are independent. The cash out 14%. After-tax cash flons, induding depreciation, are as follows: Year Truck Pulley $5.100 $7,500 5,100 7,500 5,100 5.100 7.500 5,100 7,500 a. Calculate the IRR...
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 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...
Score: /12 Attempts: 11. Problem 10-08 eBook 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 tax cash flows, including depreciation, are as follows: Pulley $7,500 Year Truck $5,100 5,100 5,100 5,100 5,100 7,sv0 7,500 7,500 7,500 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? Pulley: What...
. NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) NPV A project has an initial cost of $60,000, expected net cash inflows of $11,000 per year for 9 years, and a cost of capital of 10%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent. $ b.) NPVs and IRRs for Mutually Exclusive Projects Davis Industries must choose between a gas-powered and an electric-powered...