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Quantitative Problem: Hellinger Industriet is considering two projects for Inclusion in its capital budget, and you have been asked to do the analysis. Both projects

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Quantitative Problem: Hellinger Industriet is considering two projects for Inclusion in its capital budget, and you have been asked to do the analysis. Both projects ander tax cash flows are shown on the time line below. Depreciation, salvace values, net operating working capital requirements, and tax effects are included in these cash flows. Both projects have 4-year ies, and they have Mlak characteristies similar to the firm's average project. Bellinger's WACC is 124 1 2 3 Project A Project B -1,110 1,110 790 390 350 285 250 400 300 750 What is Project A'SIRR? 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 method If the projects were mutually exclusive, which project(s) would be accepted according to the method? Could there be a conflict with project acceptance between the NPV and the approaches when projects are mutually exclusive? The reason Reinvestment at the is the superior motion, so when mutually exclusive projects are evaluated the approach should be used for the capital budgeting dedsion

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