Quantitative Problem An Industry 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 timeline 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 950 600 355 260 310 Project B 950 200 290 410 760 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: Quantitative Problem: An Industry is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects'

Quantitative Problem: An Industry 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 timeline 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	-950	600	355	260	310
Project B	-950	200	290	410	760

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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