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 -990 630 305 200 250
Project B -990 230 240 350 700
What is Project A's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
What is Project B's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
If the projects were independent, which project(s) would be accepted?
If the projects were mutually exclusive, which project(s) would be accepted?