The net present value (NPV) method estimates how much o potential project will contribute to and it is the best selection criterion. The the NPV, the more value the project adds; and added value means a stock price, In equation form, the NPV is defined as: NPV=CF0+(1+r)3CV1+(1+r)2cr0++(1+r)nCV2=i=0N(1+r)tCFi CF, is the expected cash fow at Time t,r is the project's risk-adjusted cost of capital, and N is its life, and cash outfiows are treated as negative cash flows. The kPV calculation assurpes that cash infiows can be reinvested at the project's risk-adjusted When the firm is considering independent projects, if the project's Npy exceeds zero the firm should the project. When the firm is considering mutually exclusve projects, the firm should accept the project with the NPV Quantitative Problemt Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysik. Both projects' after-tax cash flows are shown on the time line below, Depreclation, salvage values, net operating working copital 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. Bellnger's WACC is 7 \%. What is Project A's NPV? Do not round intermediate calculatians. Round your answer to the nearest cent. 5 . What is Project Bs NPV? Do not round intermediate calculatians. Round your answer to the nesrest cent. 1 If the arojects were independent, which project(s) would be accepted? If the projects were mutually exclusive, which project(s) would be accepted