Question: Quantitative Problem: Berlinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Botn projects
Quantitative Problem: Berlinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Botn projects after-tax cath 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 he's average project. Bellinger's WACC is 7% 2 0 3 Project A - 1,100 650 395 250 300 Project B -1,100 250 330 400 750 What is Project A's payback? Do not round Intermediate calculations. Round your answer to four decimal places years What is Project A's discounted payback? do not round Intermediate calculations, Round your answer to four decimal places years What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places years What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years Save & Continue
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