Question: **USING NPV*** Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis.

 **USING NPV*** Quantitative Problem: Bellinger Industries is considering two projects forinclusion in its capital budget, and you have been asked to do

**USING NPV***

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 10%. Project A-1,100 590 Project B-1,100 270 360 280 280 770 What is Project Delta's IRR? Do not round intermediate calculations. Round your answer to two decimal places. What is the significance of this IRR? It is the Selectafter this point when mutually ex after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches

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