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
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. Year 01 WN-O Project F -$ 195,000 98,400 86,300 81,600 72,000 64,800 Project G -$298,000 71,600 94,500 123,600 166,800 187,200 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 should the company accept? years years a. Project F Project G b. Project F Project G c. Project acceptance
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