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Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both
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 1 2 3 4 Project A Project B -1,000 700 365 270 320 -1,000 300 300 420 770 What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places. Xyears Show All Feedback What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years Show All Feedback What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places. years Show All Feedback What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. years
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