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Problem 11-8. 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. Project A is the truck and Projct B is the pulley. The firm's cost of capital is 12 percent. 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 NPV for each project. Round your answers to the nearest dollar, if necessary. Enter each answer as a whole number. For example, do not enter 1,000,000 as 1 million.
e. Project A:

g. Project B:

Calculate MIRR for each project. Round the answers to the nearest hundredth.
Project A:

Project B:


Solution Summary

The solution explains how to calculate the NPV and MIRR for the given projects