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 -1,250 700 370 200 310 Project B -1,250 280 315 395 750 What is Project Delta's IRR? Do not round intermediate calculations. Round your answer to two decimal places. What is the significance of this IRR? It is the -Select- after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches. Review t-Select Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu. -Select- equity return JPV Profiles A NPV Profiles B NPV Profiles C crossover rate () NPV (5) 600 interest yold 600 INPV 5 600 500 400+ 500 500 4001 4001 300 300 300 200 200 200 100 100 100 5 10 20 25 30 5 10 10 20 25 30 5 10 1 10 20 25 30 -1001 -1001 -200 Cost of Capical % Cos Capital -200 Cost of Capital -1005 -200 -3001 -4001 -300 -300 -4001 -400 NPV Profiles D INPV (5) Ann -Select- v -Select- NPV Profiles A NPV Profiles B NPV (5) INPV (5) 600 600+ 500 400 300+ 200+ 1001 500 400 300+ 2007 100 5 10 20 25 30 5 10 20 25 30 -1007 -100 -2001 Cost of Capital Cost-of Capital% -3001 -4001 -2001 -3001 -4001 NPV Profiles c NPV Profiles D INPV (5) INPV (5) 6001 500+ 6001 500! 400 3007 4001 3001 2007 1001 200 1001 5 10 20 25 30 5 10 15 20 25 30 -100 -100 -2001 Cost of Capital% Cost of Capital% -3001 -4001 -2001 -3001 -4001