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 -990 640 330 240 290

Project B -990 640 265 390 740

a.What is Project A's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $ ______

b.What is Project B's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $_____

If the project were independent, which project (s ) would be accepted?_______________________________

If the projects were mutually exclusive, which project (s) would be accepted? _________________________