Bellinger Industries is considering two projects for inclusionin its capital budget, and you have been asked to do the analysis.Both projects' after-tax cash flows are shown on the time linebelow. Depreciation, salvage values, net operating working capitalrequirements, and tax effects are all included in these cash flows.Both projects have 4-year lives, and they have risk characteristicssimilar to the firm's average project. Bellinger's WACC is 11%.
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 beaccepted according to the IRR method?
-Select-Neither project Project A Project B Both projects A and B
If the projects were mutually exclusive, which project(s) wouldbe accepted according to the IRR method?
-Select-Neither project Project A Project B Both projects A and B
Could there be a conflict with project acceptance between theNPV and IRR approaches when projects are mutually exclusive?
Yes or No
Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the
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