Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have
Posted: Fri Jul 01, 2022 7:46 am
Quantitative Problem: Bellinger Industriesis considering two projects for inclusion in its capital budget,and you have been asked to do the analysis. Both projects'after-tax cash flows are shown on the time line below.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 12%.
What is Project A's payback? Do not round intermediatecalculations. Round your answer to four decimal places.
years
What is Project A's discounted payback? Do not roundintermediate calculations. Round your answer to four decimalplaces.
years
What is Project B's payback? Do not round intermediatecalculations. Round your answer to four decimal places.
years
What is Project B's discounted payback? Do not roundintermediate calculations. Round your answer to four decimalplaces.
years
What is Project A's payback? Do not round intermediatecalculations. Round your answer to four decimal places.
years
What is Project A's discounted payback? Do not roundintermediate calculations. Round your answer to four decimalplaces.
years
What is Project B's payback? Do not round intermediatecalculations. Round your answer to four decimal places.
years
What is Project B's discounted payback? Do not roundintermediate calculations. Round your answer to four decimalplaces.
years