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please answer last part on B's discounted rate showing how to work it out please Payback = years prior to the forefall fall recovery The

please answer last part on B's discounted rate showing how to work it out please image text in transcribed
Payback = years prior to the forefall fall recovery The shorter a project's payback, the better the project is. However payback has 3 main disadvantages: (1) All dofars received in different years are given cual v weight. (2) Cash flows beyond the payback year are ignored. (3) The payback merely indicates when a project's investment will be recovered. There is no necessary relationship between a given payback and investor wealth maximization A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback considers cal costs. However, the discounted Payback stil disregards cach flows beyond the payback year. In addition, there is no specific payback rule to justify project acceptance. Both methods provide information about liquidity and risk Quantitative ProblemBellinger 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 star to the firm's average project. Bellinger's WACC is 79 0 1 2 3 1 Project A -1,050 600 360 230 280 Project B -1,050 200 295 230 What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places 2.3913 years Show All Feedback What is Project A's discounted payback? Do not round Intermediate calculations. Round your answer to four decimal places Show All Feedback What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places 3.2397 years Show All Feedback What is Project 's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places 3 years

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