What is Project Bs discounted payback

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Question - 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

-1,150

650

435

280

330

Project B

-1,150

250

370

430

780

Required -

What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places.

What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places.

What is Project B's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places.

Reference no: EM133053163

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