Problem 8-21 NPV and Payback Period [LO 1, 4]

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 13 percent.

Year	Project F		Project G
0	$	132,000	$	202,000
1		61,500		41,500
2		48,500		56,500
3		58,500		88,500
4		53,500		118,500
5		48,500		133,500

Required:

(a)	Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Payback period
Project F	years
Project G	years

(b)	Calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Net present value
Project F	$
Project G	$

(c)	Which project should the company accept?
	(Click to select)Project F or Project G