Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and...
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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' aftertax 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 year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is
What is Project As NPV Do not round intermediate calculations. Round your answer to the nearest cent.
$ What is Project Bs NPV Do not round intermediate calculations. Round your answer to the nearest cent.
$
If the projects were independent, which projects would be accepted?
would be accepted.
If the projects were mutually exclusive, which projects would be accepted?
would be accepted.
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