Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you...
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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 9%. 0 1 2 3 Project A Project B -930 680 320 270 320 -930 280 255 420 770 What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. S What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. endent, which project(s) would be accepted? 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 9%. 0 1 2 3 Project A Project B -930 680 320 270 320 -930 280 255 420 770 What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. S What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. endent, which project(s) would be accepted?
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