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Kaleb Konstruction Inc has the following mutually exclusive projects available The company has historically used a threeyear cutoff for projects The required return is 11 percent Year

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   Project F   Project G
0 –$ 144,000      –$ 214,000     
1   55,500        35,500     
2   54,500        50,500     
3   64,500        94,500     
4   59,500        124,500     
5   54,500        139,500     
 
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?
 

Apr 02 2020 View more View Less

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