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 79. 0 1 2 3 -950 -950 640 240 400 335 240 390 290 740 Project A Projects What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is Project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. If the projects were independent, which project(s) would be accepted? Drejt If the projects were mutually exclusive, which project(s) would be accepted? Project A
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