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 900 640 395 240 290 Project B 900 240 330 390 740 What is Project A's NPV Round your answer to the nearest cent Do not round your intermediate calculations $ What is Project B's NPV Round your answer to the nearest cent Do not round your intermediate calculations $ If the projects were independent, which project(s) would be accepted Select NeitherProject AProject BBoth projects A and BCorrect 1 of Item 3 If the projects were mutually exclusive, which project(s) would be accepted Select Neither Project AProject BBoth projects A and BCorrect 2 of Item 3

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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	-900	640	395	240	290
Project B	-900	240	330	390	740

What is Project A's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $________

What is Project B's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $________

If the projects were independent, which project(s) would be accepted? -Select-NeitherProject AProject BBoth projects A and BCorrect 1 of Item 3 If the projects were mutually exclusive, which project(s) would be accepted? -Select-Neither Project AProject BBoth projects A and BCorrect 2 of Item 3

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