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 11

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 Proiect -$134,000 60,500 49,500 59,500 54,500 49,500 Project G $204,000 40,500 55,500 89,500 119,500 134,500 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.) Payback period years Project F Project years b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e... 32.16.) Net present value Project F Project G c. Which project, if any, should the company accept? (Click to select)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
