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%. Project A Project B 1,100 1,100 590 270 360 280 220 390 280 770 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 the graphs below. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu. Select- NPV Profiles A NPV Profiles B NPVS MP3 6004 6000 500+ 500+ 4007 3001 3001 400+ NPV Profiles A NPV Profiles B INPV (5) INPV (5) 2001 1001 10 15 20 5 10 15 20 25 30 25 30 Cost de Capital (%) Cost Capital (%) -1001 -2007 -3001 -4001 -1001 -2007 -3001 -4001 NPV Profiles C NPV Profiles D INPV (5) 6001 NPV (5) 6000 5001 4007 300+ 2007 100+ 6 5 20 25 30 25 30 Cost Capital (%) -1001 Cost of Capital (%) -1007 -2001 -3001 -4001 -2001 -3001 -4001
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