#2

#3

#4

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Balinger's WACCI 7% 0 1 2 3 4 Project A Project B - 1.100 - 1.100 650 250 390 325 290 440 340 790 What is Project A's payback? Round your answer to four decimal places. Do not round intermediate calculations. years What is Project A's discounted payback? Round your answer to four decimal places. Do not round intermediate calculations, Years What is Project B's payback? Round your answer to four decimal places. Do not round intermediate calculations years What is Project B's discounted payback? Round your answer to four decimal places. Do not round intermediate calculations. years Check My Work (3 remaining) Olon Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC IS . 10% 0 1 2 3 Project A Project -970 -970 630 230 365 300 240 390 290 740 What is Project A's NPV? Round your answer to thun nearest cont. Do not round Intermediate calculations What is Project B's NPV? Round your answer to the nearest cent. Do not round intermediate calculations If the projects were independent, which project(s) would be accepted? Select If the projects were mutually exclusive, which project(s) would be accepted? Select Check My Work (3 remaining) O projects. Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC IS 9% 0 2 3 4 Project A Project B -1,000 -1,000 650 250 320 255 270 420 390 840 What is Project A's IRR? Do not round intermediate calculations. Pound your answer to two decimal places What is Project 8's IRR? Do not round Intermediate calculations, Round your answer to two decimal places If the mients were independent, which project(s) would be accepted according to the IRR method