roject with the Select NPV. 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 8%. 0 1 2 3 4 310 310 410 Project A -970 700 260 Project B -970 300 245 760 What is Project A's NPV? Do not round Intermediate calculations, Round your answer to the nearest cent. 5 What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. If the projects were independent, which project(s) would be accepted? of the projects were mutually excutive, which project() would be accepted? Select- ons Navigation Menu Check My Work Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 646 coupon, semiannual payment ($30 payment every 5 months). The bonds currently sell for $847,87. If the firm's marginal tax rate Las 25, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Belinger 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 8% 0 1 2 3 210 320 Project A -1,050 610 385 290 330 Project B -1,050 440 780 What is Project A's IRR? Do not round Intermediate calculations. Round your answer to two decimal places. What is Project BS TAR? 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 IRR method? If the projects were mutually exclusive, which project(s) would be compted according to the IRR method Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? Select The reasons -Select investment at the Select the superior assumption, so when mutually exclusive projects are evaluated the Select oproach should be used for the capital budgeting decision
