Question: quantitative Problem: tselllnger Industries IS considering two projects ror Inclusion In its capital budget, and you have been asked to do the analysis. Both projects'


quantitative Problem: tselllnger Industries IS considering two projects ror Inclusion In its capital budget, and you have been asked to do the analysis. Both projects' aftertax 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 ows. Both projects have dryear lives, and they have risk characteristics similar to the rm's average project. Bellinger's WACC is 8%. O l 2 3 4 Proje 1.000 550 440 200 250 ctA Proje 1,000 250 315 350 3'00 ctB What is Project A's payback? Round your answer to four decimal piaces. Do not round your intermediate calculations. 1 years What is Project A's discounted payback? Round your answer to four decimal piaces. Do not round your intermediate calculations. 7 years What is Project B's payback? Round your answer to four decimal piaces. Do not round your intermediate calculations. 1 years What is Project B's discounted payback? Round your answer to four decimai places. Do not round your intermediate calculations. 1 years
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