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If it of The net present value (NPV) method estimates how much a potential project will contribute to and it is the best selection crite

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If it of The net present value (NPV) method estimates how much a potential project will contribute to and it is the best selection crite price. In equation form, the NPV is defined as: NPV=CF0+(1+r)2CF1+(1+r)2CV1++(1+r)CFV= When the firm is considering independent projects, if the project's Nov exceeds zero the firm should the project. When the firt NPV. Quantitative Problem: Bellinger Industries is considering two projects for indusion in its capital budget, and you have been asked to do the analysi operating working capital requirements, and tax effects are all induded in these cash flows. Both projects have 4-year lives, and they have risk charac What is Project A's NPV7 Do not round intermediate calculations, Round your answer to the nearest cent. $ What is Profect B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. If the projects were independent, which broject(s) would be accepted? If the projects were mutually exclusive, which profect(s) would be accepted? NPV=CF0+(1+t)2CFi+(1+t)1CF1++(1+t)8CFt=i=6N(1+r)1CF2 the NPV, the more value the project adds; and added value means a stack pital, and N is its life, and cash outflows are treated as negative cash flows. The NPV calculation assimes that cash inflows can be reinvested at the project's risk-adjusted PV exceeds zero the firm should the project. When the firm is considering mutually exdusive projects, the firm should accept the project with the usion in its capital budget, and you haye been asked to do the analysis. Both peojects' after-tax cash flows are shown on the time line below. Depreciation, saivage values, net cash flows. Both projects have 4 -year lives, and they have rlsk characteristics similar to the firm's average project. Bellinger's WacC is 8%. answer to the nearest cent. answer to the nearest cent

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