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.
YearProject F Project G
0 -$150,000-$235,000
1 78,000 54,000
2 54,000 72,000
3 68,000103,000
4 60,000139,000
5 54,000156,000
Calculate the payback period( in years) for both projects.
Calculate the NPV for both projects
Which project should the company accept?
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