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Jack Engineering is considering two projects, Project Alpha and Project Beta system, in this year's capital...

  1. Jack Engineering is considering two projects, Project Alpha and Project Beta system, in this year's capital budget. The projects are independent. The cash outlay for the Project Alpha is $44,860 and that for the Project Beta is $34,200. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

Year

Project Alpha

Project Beta

1

15,000

10,200

2

15,000

10,200

3

15,000

10,200

4

15,000

10,200

5

15,000

10,200

Required:

  1. Calculate the IRR for each project.

  1. Calculate the NPV, for each project

  1. Calculate the MIRR for each project

  1. Indicate the correct accept-reject decision for each.

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