please solve these pratice problems 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, netoperating 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 10%.-Select-%0Project A-950550150Project B -950What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places.-Select-%1-Select-23370305What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places.The reason is -Select-4220370If the projects were independent, which project(s) would be accepted according to the IRR method?360810If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method?Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive?Reinvestment at the -Select- is the superior assumption, so when mutually exclusive projects are evaluated the -Select-approach should be used for the capital budgeting decision. 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, netoperating 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 8%.0Project A -1,150Project B-1,15066026023703053290440340790

The techniques followed in the modern approach of capital budgeting are the PI, IRR, and NPV. These methods will reflect the time value of money's essence.Formula: Values:Since both the IRRs are above the WACC of 10%, both projects can be accepted in case the projects are independent.If they are mutually exclusive, the project with the highest IRR, i.e., Project A would be selected.Formula: Values: As per the IRR, project A is better as it has the highest IRR that crosses the WACC and as per NPV project B is better as it has the highest NPV that exceeds $0.The IRR and NPV provide conflicting recommendations as the NPV assumes that the cash flow's reinvestment rate is the WACC and the IRR assumes that the cash flow's reinvestment rate is the IRR itself. So, both provide different results.Reinvesting using WACC is the best assumption, so in the case of mutually exclusive project analysis, the net present value (NPV) must be used for capital investment decisions.Formula: Values: Projects A and B (both) can be selected if the projects are independent as per the IRR rule.Project A must be selected as per the IRR rule in case the projects are mutually exclusive.Quantitative problem 1:Project A's IRR is 24.12%.Project B's IRR is 19.63%.Both projects can be taken up if they are independent.Project A must be preferred in case of mutually exclusive projects.IRR and NPV provide conflicting results as NPV and IRR use different reinvestment rates.If reinvestment is made using WACC, it is considered a superior assumption, and the NPV method must be used in the case of mutually exclusive projects for capital investment decisions.Quantitative problem 2:Project A's IRR is 19.40%.Project B's IRR is 16.68%.Project A's NPV is $258.45.Project B's NPV is $282.19.