Quantitative Problem: Belinger Industries is considering two projects for inclusion in its cepital 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 eperating working capital requirements, and tax effects are all induded in these cash flows. Both projects hav 4-year lives, and they have risk characteristics similar to the firm's average project. Belinger's WACCs 10%. Project A -900 600 350 220 270 Project 200 285 370 720 -900 What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations years What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. years What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations
Quantitative Problem: Belinger Industries is considering two projects for inclusion in its cepital 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 eperating working capital requirements, and tax effects are all induded in these cash flows. Both projects hav 4-year lives, and they have risk characteristics similar to the firm's average project. Belinger's WACCs 10%. Project A -900 600 350 220 270 Project 200 285 370 720 -900 What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations years What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. years What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all induded 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 10%.
Project A
600
350
220
270
Project B
-900
200
285
720
What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project
s discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23bec843-78fe-4307-b4b7-5efc413bbe00%2F79973030-a152-443b-a6f2-eca29db7ea76%2Fdoioqs_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all induded 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 10%.
Project A
600
350
220
270
Project B
-900
200
285
720
What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
What is Project
s discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations.
years
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