Question: Please show work with equations! Capital Budgeting Edelman Engineering is considering a piece of equipment in this years capital budget. The cash outlay for the
Please show work with equations!
Capital Budgeting
Edelman Engineering is considering a piece of equipment in this years capital budget. The cash outlay for the truck is -$24,100. The firms cost of capital, WACC, is 13 percent. The expected cash inflows are as follows:
| YEAR | Free Cash Flow |
| 1 | $5,500 |
| 2 | $5,500 |
| 3 | $5,500 |
| 4 | $5,500 |
| 5 | $7,500 |
- Calculate the NPV. Do you accept or reject?
- Calculate the MIRR. Do you accept or reject?
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