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3. The Basies of Capital Budgeting: IRR on a bond, The equation for calculating the 1RA is: 0=t=1n(1+1RR)nCFi solved for the parbcular cicount rate that causes NPN to equal characteristics similar to the fires's average profect. Bellinger's WACC is oW. charecteristics similar to the firm's average project. Bellinger's WACC is ask: What is Project A's 1RR? Do not round intermediate calculations. Round your anwwer to twa decimal places. What is Preject Bs 1R9? Do not round intermed ate calculatigeth. Round your answer to two decimal places: H the proyects were indeperident, which project(s) woud be acrepced acrording ta the inil method? The reason is tieste ir-investment at the is the superior assumption, so when minualy exclusive projects are evaluted the approach sheuld be used for the capital budgeting dedisin. A project's internal rate of return (:2R) is the that foeces the PW of its inflows ta equal its cost. The IRR is an eitimate of the praject's rate of return, and it is comcarabie me ene on a bond. The twuation for calculeting the TRR is: 0=t=1(1+It)iCFt solvad for the particular discount rate that counes NPN to equal dieracteristics similar to the firms average project. flellinger's wacc in a\%. 11- Assignment - The Basics of Capital Budgeting time line below. Oepreciabion, salvage values, net operating working capital requirements, and tax effects are all induded in thete cath flows. soth projects have 4 -year twes, ard they saye rise characteristics simiar to the firm's averege project, Bellinger's wacc is 8%. What is Project A's 1R9? Do not round intermediate caloulations. Round your anseer to tao docimal places. What is Project b's 19g? Do not round utermediate calculations. Pisund your ansaer to tae decmal places. If the preiects were indegendent, which project(s) would be accepted accsedng to the sag methec? If the projects were mutually exciusive, which project(s) would be acceptad accordirg is the thil metwol? Could the be a confict wien project acceotence between the MPN and shR acproaches whed trojects are nutualy ekclusive? Whe fagann is veiecto Reinvestriant at the is the superice assuapton, so anen mutvall exchusive prejects are evaliates the

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