Question: 10. Comparing NPV and Payback tools problem Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff
10. Comparing NPV and Payback tools problem 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 11 percent Year Project F Project G 0 1 2 3 4 5 $129,000 63,000 47,000 57,000 52,000 47,000 $199,000 43,000 58,000 87,000 117,000 132,000 a. Calculate the payback period for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which project, if any, should the company accept? years years a. Project F Project G b. Project F Project G C
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