Problem 11 2 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 7 0 1 2 3 4 Project A 900 600 415 270 320 Project B 900 200 350 420 770 What is Project A's payback Round your answer to four decimal places Do not round your intermediate calculations years What is Project A's discounted payback Round your answer to four decimal places Do not round your intermediate calculations years What is Project B's payback Round your answer to four decimal places Do not round your intermediate calculations years What is Project B's discounted payback Round your answer to four decimal places Do not round your intermediate calculations years

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Question: Problem 11-2 Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis.

Problem 11-2

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 7%.

	0	1	2	3	4

Project A	-900	600	415	270	320
Project B	-900	200	350	420	770

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

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

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

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

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