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    NPV and MIRR

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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:

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    Solution Summary

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