The net present value (NPV) method estimates how much a potential project will contribute to and the best selectionnon. The the more value the project adds, and added value means stock price in equation form the NPV is defined the NP NPV - CF,+ + + + (...) (1+r) CF is the expected cash flow at time is the project's risk-adjusted cost of capital, and is its me, and cash outflows are treated as negative cash flows. The NPV calculation wsumes that chinhows can be reinvented at the project's risk adjusted. When the firm is considering independent projects, the project's NPV exceeds vero the them should the project. When the firm is considering mutually exclusive projects, the form should accept the project with the NPV Quantitative Problemi telinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis for projects aftur taxe fhows are shown on the time the below. Depreciation, salvage valves, net operating working capital requirements, and tax effects we w induced in these con now. Both projecte have ever wes, and they have risk characteristics ar to the firm's wverage project Inger's WACC ? Project 40 090 150 290 3:40 Project -940 290 313 440 790 Was Project A'S NIV? Dround intermediate calculations. Found your answer to the nearestent What is Project ' NPVT Do not round intermediate calculation Round your wts The restent Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax eff. have 4-year Ilves, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 7%. 2 0 Project A -940 690 380 290 340 Project B -940 290 315 790 What is Project A's NPV? Do not round Intermediate calculations. Round your answer to the nearest cent. 440 $ 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? -Select- If the projects were mutually exclusive, which project(s) would be accepted? -Select