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 11%.   0 1 2 3 4                       Project A -1,000 700 430 290 340 Project B -1,000 300 365 440 790 What is Project A's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.  % What is Project B's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.  %

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
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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 11%.

  0 1 2 3 4
                     
Project A -1,000 700 430 290 340
Project B -1,000 300 365 440 790

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

 %

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

 %

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