Question: Quantitative Problemt Bellinger Industries is considering two projects for indusion in its capital budget, and you have been asked to do the analysis. Both projects
Quantitative Problemt Bellinger Industries is considering two projects for indusion in its capital budget, and you have been asked to do the analysis. Both projects after-tay cash flows are shown on the time line below. Depreciation, saivage values, net operating working capital requirements, and tax eliects are all inciuded in these cash fiowk. Both projects have 4-year lives, and they have risk characteristics simlar to the firm's average project. Bellinger's WACC is 9%. What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places. What is Project B's tAR? Do not round intermediate calculations. Round your anbwer to two decimal places. If the projects were independent, which project(s) would be accepted occording to the tht method? If the projects were mutually exclusive, which project(s) would be accepted according to the IIR method? Could there be a confict with project acceptance between the NPV and IRR approaches when projects are mutualy exdusive? The reavon is s select: Reinvestment at the is the superior assumption, so when mutually exclusive projects are evalusted the decision
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