Question

5. 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 10%.

	0		1		2		3		4
Project A	-1,250		700		370		200		310
Project B	-1,250		280		315		395		750

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

____ %

6. 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	-1,300		650		420		210		260
Project B	-1,300		250		355		360		710

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

____%

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

____%

Answer 1

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i think first question is delta IRR and not delta's IRR. Any change let me know