What is Project Delta IRR

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Quantitative Problem: 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

-1,200

600

400

230

300

Project B

-1,200

410

330

210

740

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

Reference no: EM132188588

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