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 projects'
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 2 3 310 280 400 A Project -1,300 640 Project -1,300 240 B 245 430 850 What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places What is Project B'SERR? Do not round intermediate calculations. Round your answer to two decimal places of the projects were independent, which project(o) would be accepted according to the TR method? Select If the projects were mutually exclusive, which project() 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- capital budgeting decision is the superior assumption, so when mutually exclusive projects are evaluated the Select approach should be used for the
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