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 10 0 1 2 3 4 Project A 1,300 650 380 280 330 Project B 1,300 250 315 430 780 What is Project A's MIRR Do not round intermediate calculations Round your answer to two decimal places What is Project B's MIRR 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 MIRR method Select NeitherProject AProject BBoth projects A and BCorrect 1 of Item 3 If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method Select NeitherProject AProject BBoth projects A and B

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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 10%.

	0	1	2	3	4

Project A	-1,300	650	380	280	330
Project B	-1,300	250	315	430	780

What is Project A's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

What is Project B's MIRR? 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 MIRR method?

-Select-NeitherProject AProject BBoth projects A and BCorrect 1 of Item 3

If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method?

-Select-NeitherProject AProject BBoth projects A and B

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