Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-yea

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3 years ago

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Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-yea

r cutoff for projects. The required return is 12 percent.Year Project F Project G0 –$ 126,000 –$ 196,000 1 64,500 44,500 2 45,500 59,500 3 55,500 85,500 4 50,500 115,500 5 45,500 130,500 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?

Business

1 answer:

iren2701 [21] · Answer 1 · 2021-11-12T05:09:14+03:00

Answer:

Explanation:

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 12 percent.Year Project F Project G0 –$ 126,000 –$ 196,000 1 64,500 44,500 2 45,500 59,500 3 55,500 85,500 4 50,500 115,500 5 45,500 130,500 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?