Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year

Question:

Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 10 percent. Project G Year Project F -$125,000 -$195,000 45,000 65,000 2 45,000 60,000 85,000 3 55,000 50,000 115,000 130,000 45,000

a. Calculate the payback period for both projects.
b. Calculate the NPV for both projects.
c. Which project, if any, should the company accept?

Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...