Please answer every part. 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 8%.
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 8%. 0 2 3 4 1111 Project A Project B -1,050 -1,050 610 210 385 320 290 440 330 780 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? -Select- If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? -Select- Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -Select- The reason is Select e Reinvestment at the -Select- is the superior assumption, so when mutually exclusive projects are evaluated the -Select- approach should used for the capital budgeting decision. If the projects were independent, which project(s) would be accepted according to the IRR method? -Select- Neither mutually exclusive, which project(s) would be accepted according to the IRR method? Project A Project B Both projects A and B If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? -Select- Neither nflict with project acceptance between the NPV and IRR approaches when projects are mutually exo Project A Project B Both projects A and B The reason is -Select- Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -Select- Yes No bn is -Select- Reinvestment at the -Select- is the superior assumption, so when mutually exclusive projects are evaluated the -Select- approach should be The reason -Select- Reinvestme the NPV and IRR approaches use the same reinvestment rate assumption and so both approaches reach the same project acceptance when mutually exclusive projects are considered. the NPV and IRR approaches use different reinvestment rate assumptions and so there can be a conflict in project acceptance when mutually exclusive projects are considered. ed for the ca
