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Edelman engineering is considering including two pieces of


Problem: 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 $15,200, and that for the pulley system is $23,300. The firm's cost of capital is 16.25%. After-tax cash flows, including depreciation, are as follows:

Year   Truck     Pulley

1    $5,400          $9,200     

2    $5,400          $9,200     

3    $5,400          $9,200     

4    $5,400          $9,200     

5    $5,400          $9,200     

Calculate MIRR of truck project and Pully project

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