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 flows are shown on the time line below, Depreciation, salvage values, net operating workang capital requirements, and tax effects are all induded in these cash flows. Both proje tave 4-yesr lives, and they have risk characteristics similar to the firm's average project. Bellinger's waCC is 10%. What is Project A's IRR7 Do not round intermediate caiculations. Round your answer to two decimal places. What is Project B's IRR? Do not round intermediate calculations. Rolind your answee to two decimal places. If the projects were independent, which project(s) would be accepted according to the IRa method? If the projects were mutually exclusive, which project(s) would be accepted according to the IRA method? Could there be a confict with project acceptance between the NPV and IRR approaches when projects are mutualy exdusive? The reason is -seied. Reinvestment at the is the supenor assumption, so when mutually exciusive projects are evaluated the approach should be used for the capital budgeting decition

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