Question: . 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 796 . 0 1 2 . Project A Project B -1,150 -1,150 700 300 365 300 200 350 250 700 What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places. years B What is Project As discounted payback? Do not round Intermediate calculations. Round your answer to four decimal places. years What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places years What is Project B's discounted payback? Do not round Intermediate calculations. Round your answer to four decimal places, years Quantitative Problemi 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 capitat 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 2 670 Project A Project -960 960 270 310 245 290 440 340 790 What is Project A's NPV? Do not round intermediate calcutations. Round your answer to the nearest cent. $ What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ If the projects were independent, which project(s) would be accepted? Select- If the projects were mutually exclusive, which project(s) would be accepted? -Sciech Quantitative Problemi Bellinger Industries considering two projects for indusion in its capital budget, and you have been asked to do theanais 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 withese cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project Bellinger's WACC is 11% A 0 1 2 - 1,250 1.250 Project A Project 730 330 360 270 295 315 765 420 What is Project A TRR7 Do not round intermediate calculation, Round your answer to the decimal places 124B What is Project TRA? Do not round intermediate calculations, Round your answer to two decimal places If the projects were independent, which project(s) would be accepted according to the IRR method Select If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Select Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -Select The reason is -Select- Reinvestment at the select-o is the superior assumption, so when mutually exclusive projects are evaluated the select approach should be used for the capital budgeting decision
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