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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
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 7\%. What are the two projects NPVs, IRRs, MIRRs? Do not round your intermediate calculations. Round your answer to two decimal places. Project A's NPV is equal to $ Blank 1. Project B's NPV is equal to $Blank2. Project A's IRR is equal to Blank 3\% Project B's IRR is equal to Blank 4% Project A's MIRR is equal to Blank 5% Project B's MIRR is equal to Blank 6% If the projects were independent, which project(s) would be accepted? Blank 7 (A/B/both) If the projects were mutually exclusive, which project(s) would be accepted? Blank 8 (A/B/both)
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