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 Project F Project G 0 $180,000 $280,000 1 93,600 64,800 2 64,800 86,400 3 81,600 123,600 4 72,000 166,800 5 64,800 187,200 a Calculate the payback period for both projects b Calculate the NPV for both projects c Which project, if any, should the company accept

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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

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	Project F	Project G
0	-$180,000	-$280,000
1	93,600	64,800
2	64,800	86,400
3	81,600	123,600
4	72,000	166,800
5	64,800	187,200

a. Calculate the payback period for both projects.

b. Calculate the NPV for both projects.

c. Which project, if any, should the company accept?

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