Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used...
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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 | $ | 127,000 | $ | 197,000 |
1 | 64,000 | 44,000 | ||
2 | 46,000 | 59,000 | ||
3 | 56,000 | 86,000 | ||
4 | 51,000 | 116,000 | ||
5 | 46,000 | 131,000 | ||
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 |
Calculate the NPV for both projects. |
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