Quantitative Problem: Bellinger Industries is considering two projects for inclu

Question

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you below. Depreciation, salvage values, net operating working capital requirements, and tax frm's average project. Bellinger's WACC is 9%. effects are all ncluded in ed to do the analysis. Both projects after-tax cash flows are shown on the time line these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the flows. Both Project A -960640 Project 8 960 240255440 790 320 290 340 what is Project A's NPV? Round your answer to th nearest cent Do not round your inermediate cacatons. B's NPVT Round your ansner to the nearest cent. De not round your intermediate calculations

Explanation / Answer

Project A NPV

=-960+640/1.09^1+320/1.09^2+290/1.09^3+340/1.09^4=361.29

Project B NPV

=-960+240/1.09^1+255/1.09^2+440/1.09^3+790/1.09^4

=374.23

the above are the answers

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