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 8 0 1 2 3 4 Project A 1,300 700 385 290 340 Project B 1,300 300 320 440 790 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: 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 8%.

	0	1	2	3	4

Project A	-1,300	700	385	290	340
Project B	-1,300	300	320	440	790

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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