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call U Lise Blueprint Problems Ch 11 Brigham Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have

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call U Lise Blueprint Problems Ch 11 Brigham 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%. 330 Project A Project B -1,200 -1,200 630 230 290 440 350 800 265 What is Project AS TRR? Do not round intermediate calculations. Round your answer to two decimal places What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places. If the projects were independent, which project(s) would be accepted according to the IRR method? If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? The reason is Select approach should be used for the the superior assumption, so when mutually exclusive projects and evaluated the Reinvestment at the chaudesta decision What is Project A's IRR? Do not round Intermediate calculations. Round your answer to two decimal places What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places If the projects were independent, which project(s) would be accepted according to the IRR method? If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive The reason is Select approach should be used for the is the superior assumption, so when mutually exclusive projects are evaluated the Reinvestment at the best capital budgeting decision Save & Continue

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