Question: Not with excel or financial calc please 2. Edelman Engineering is considering including two pieces of equipment: a TRUCK and an OVERHEAD pulley system, in
Not with excel or financial calc please 2. 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 1 $7,100 2 7,100 3 7,100 4 7,100 Pulley $8,500 9,500 10,500 8,500 A. What is the Pay Back period of the projects? State the accept/reject decision. B. What is the NPV of the projects? C. What is the IRR of the projects
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