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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 projects'
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 nisk characteristics similar to the firm's average project, Bellinger's WACC is 3% 0 Project A -1.150 650 355 260 310 Project 1,150 250 290 410 760 What is Project A's MIRRY Do not round Intermediate calculations, Round your answer to two decimal places What is Project B's MIRR? Do not round Intermediate calculations, Round your answer to two decimal places 16 If the projects were independent, which project(s) would be accepted according to the MIRR method? Select If the projects were mutually exclusive, which project(s) would be accepted according to the MIRR method? -Select
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