The reason is -Select- Reinvestment at th decision -Selectis the superior assumption, so when mutually exclusive projects are evaluated the -Select approach should be used for the capital budgeting IRR WACC Check My Work (2 remaining) 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% 0 610 385 Project A1,050 Project B 1,050 290 440 330 210 320 780 What is Project A's IRR? 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 IRR method? -Select- If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? -Select- Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -Select- The reason is-Select- Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -Select- The reason the NPV and IRR approaches use the same reinvestment rate assumption so both approaches reach the same project acceptance when the NPV and IRR approaches use different reinvestment rate assumptions so there can be a conflict in project acceptance when mutually Reinvestmel decision. used for the capital budgeting Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? -select- The reason is -Select Reinvestment at the -Select is the superior assumption, so when mutually exclusive projects are evaluated the -Select-approach should be used for the capital budgeting decision Check My Work (2 remaining) 0Icon Key