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 percent. After-tax cash flows, including depreciation, are $5,100 per year for five years for the truck and $7,500 per year for five years for the pulley. Calculate the IRR and the NPV for each project and indicate the correct accept/reject decision for each. Draw the time line for each case.
https://essaysstudio.com/wp-content/uploads/2022/02/Hnet.com-image-9-300x138.png 0 0 esadmin https://essaysstudio.com/wp-content/uploads/2022/02/Hnet.com-image-9-300x138.png esadmin2022-02-11 15:05:592022-02-11 15:05:59Edelman engineering is considering including two pieces of equipment,