CHP 11 q3

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 induded 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%. What is Project A's IRR? Do not found intermediate calculations. Round your answer to two decimal places. What is Praject B's tRR? Do not round intermediate calculations. Round your answer to two decimal places. If the projects were independent, which profecti(v) would be accepted according to the IRR method? If the projects were mutually exclurive, which project(s) would be accepted according to the IRA method? Could there be a conflict with project acceptance between the NFV and IRR approaches when projects are mutually exclusive? Reinvestroent at the is the superior assumption, so when mutually exchusive projects are evaluated the approach should be used for the capital budgeting decision