It is the -Select-equity returncrossover rateinterest yieldCorrect 1 of Item 2, after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches.

Review the graphs below. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu.

-Select-ABCDCorrect 2 of Item 2

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%. 0 2 3 4 Project A 1,250 700 370 200 310 -1,250 750 Project B 280 315 395 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 after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and Select IRR approaches Review the graphs below. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu -Select- NPV Profiles A NPV Profiles B NPV Profiles C tNPV (S) 600 500 tNPV (S) 600 tNPV (S) 600 500 500 400 400 400 2 300 200 300 300 200 200 100 100 100 5 5 10 20 25 30 15 20 25 30 10 20 25 30 -100 -100 -100 Cact of Capital (%) Cost of Capital (%) Cost of Capital (%) -200 200 200 -300 -400 -300 -300 400 400 NPV Profiles D NPv (5) 600 500 400 300 200 100 5 10 20 25 30 -100 Cot of Capital (%) -200- -300 400