Bellinger industries is considering two projects for


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 9%.

                   0         1       2     3      4

Project A - 1,000 650 415 270 320

Project B - 1,000 250 350 420 770

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

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Financial Management: Bellinger industries is considering two projects for
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