A 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 12 0 1 2 3 4 Project A 1,100 650 410 270 320 Project B 1,100 250 345 420 770 A What is Project A's payback Do not round intermediate calculations Round your answer to four decimal places years B What is Project A's discounted payback Do not round intermediate calculations Round your answer to four decimal places years C What is Project B's payback Do not round intermediate calculations Round your answer to four decimal places years D What is Project B's discounted payback Do not round intermediate calculations Round your answer to four decimal places years B 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 1 2 3 4 Project A 1,350 650 440 220 270 Project B 1,350 250 375 370 720 A What is Project A's MIRR Do not round intermediate calculations Round your answer to two decimal places B What is Project B's MIRR Do not round intermediate calculations Round your answer to two decimal places C If the projects were independent, which project(s) would be accepted according to the MIRR method Select A Neither B Project A C Project B D Both projects A and B D If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method Select A Neither B Project A C Project B D Both projects A and B

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Question: A. Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both

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 12%.

	0	1	2	3	4

Project A	-1,100	650	410	270	320
Project B	-1,100	250	345	420	770

A. What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places.

______ years

B. What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

______ years

C. What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places.

______ years

D. What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

______ years

	0	1	2	3	4

Project A	-1,350	650	440	220	270
Project B	-1,350	250	375	370	720

A. What is Project A's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

______ %

B. What is Project B's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

______ %

C. If the projects were independent, which project(s) would be accepted according to the MIRR method?

-Select-A. Neither B. Project A C. Project B D. Both projects A and B

D. If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method?

-Select-A. Neither B. Project A C. Project B D. Both projects A and B

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