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7. Artic Water Limited is evaluating two pieces of equipment, a delivery truck and a...

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7. Artic Water Limited is evaluating two pieces of equipment, a delivery truck and a 5 gallon bottle washer, in their 2021 capital budget. The projects are independent. The cash expenditure for the truck is $22,430, and the washer $17,100. The estimated life of both pieces of equipment is five years. The annual after tax cash flow from the truck is $7,500, and for the washer $5,100. The company's cost of capital is 14%. Calculate the IRR and payback period for each project and indicate which projects should be accepted. F. (6 Points)

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