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 project 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 7%. 0 2 3 4 Project A Project B -1,150 -1,150 700 300 425 360 210 360 260 710 What is Project A's payback? Round your answer to four decimal places. Do not round intermediate calculations. 2.1923 years Show All Feedback What is Project A's discounted payback Round your answer to four del mal places. Do not round Intermediate calculations. 2.7639 years
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