There must be a change in cash flow signs lo calculate the IRR. The IRR equation is simply the NPV equation solved for the particular discount rate that causes NPV to equal________. The IRR calculation assumes that cash flows arc reinvested at the___________. If the IRR is_________than the project's cost of capital, then the project should be accepted; however, if the IRR is less than the project's cost of capital, then the project should be________. Because of the IRR reinvestment rate assumption, when_________projects are evaluated the IRR approach can lead to conflicting results from the NPV method. Two basic conditions can lead to conflicts between NPV and IRR:________differences (earlier cash flows in one project vs, later cash flows in the other project) and project size (the cost of one project is larger than the other). When mutually exclusive projects are considered, then the__________method should be used to evaluate 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 arc 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 10%. What is Project A's IRR? Round your answer to two decimal places.__________% What is Project B's IRR? 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 accepted according to the IRR method?__________Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive?___________The reason is______Reinvestment at the________is the superior assumption, so when mutually exclusive projects are evaluated the_________approach should be used for the capital budgeting decision