Considering two projects for inclusion in its capital budget

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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 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 7%. 0 1 2 3 4 Project A -950 650 385 270 320 Project B -950 250 320 420 770 What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations. years Hide Feedback Partially Correct Check My Work Feedback What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. years Hide Feedback Incorrect Check My Work Feedback What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations. years Hide Feedback Incorrect Check My Work Feedback What is Project B's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. years Hide Feedback Incorrect Check My Work Feedback.

Reference no: EM132047681

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