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Kaleb Konstruction, Inc., has thefollowing mutually exclusive projects available. The comp

Kaleb Konstruction, Inc., has thefollowing mutually exclusive projects available. The comp

Kaleb Konstruction, Inc., has thefollowing mutually exclusive projects available. The company hashistorically used a three-year cutoff for projects. The requiredreturn is 11 percent.

Year

  Project F

  Project G

0

?$

139,000   

?$

209,000    

1

 

58,000    

 

38,000   

2

 

52,000    

 

53,000    

3

 

62,000    

 

92,000    

4

 

57,000    

 

122,000    

5

 

52,000    

 

137,000

         

 

 

 

 

 

Required:

 

(a)

Calculate the payback period forboth projects. (Do not round intermediatecalculations.Round your answers to 2 decimalplaces (e.g., 32.16).)

(b)

Calculate the NPV for both projects.(Do not round intermediatecalculations.Round your answers to 2 decimalplaces (e.g., 32.16).)

(c)

Which project should the companyaccept?

Abhinav 05-Dec-2019

Answer (UnSolved)

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