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	-1,050		600		350		230		270
Project B	-1,050		270		330		390		780

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

%

What is the significance of this IRR?

It is the -Select-equity returncrossover rateinterest yieldCorrect 1 of Item 2, after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches.

Review the graphs above. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu.

-Select-ABCDCorrect 2 of Item 2

-Select- NPV Profiles A NPV Profiles B INPV (5) 600 500 INPV ( 600 500 400 400 300 200 100 300 200 100 + 5 10 15 20 25 30 5 10 15 20 25 30 -100 Cost of Capital (%) Cost of Capital (%) -100 -200 -300 -4001 -200 -3001 -400+ NPV Profiles C NPV Profiles D INPV (5) 6001 FNPV ($ 600 500 5001 400 400 300 300 + 200 200 100 100+ LE 5 10 15 20 25 30 5 10 15 20 25 30 Cost of Capital% Cost of Capital% -100 -2001 -3001 -4001 -100 -2007 -3001 -4001