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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 -

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 9%.
01234
Project A -1,000600445260310
Project B -1,000200380410760
What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places.
1.8989
years
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What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.
years
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What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places.
3.0132
years
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What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.
years

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