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 0 12345 Project F $142,000 56,500 53,500 63,500 a. Project F Project G b. Project F 58,500 53,500 - Project G $212,000 36,500 51,500 93,500 123,500 138,500 a. Calculate the payback period for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which project, if any, should the company accept? years years

FINANCIAL ACCOUNTING
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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
0
12345
C.
Project F
a. Project F
Project G
b. Project F
Project G
$142,000
56,500
53,500
63,500
58,500
53,500
-
Project G
a. Calculate the payback period for both projects. (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. Calculate the NPV for both projects. (Do not round intermediate calculations and
$212,000
36,500
51,500
93,500
123,500
138,500
round your answers to 2 decimal places, e.g., 32.16.)
c. Which project, if any, should the company accept?
years
years
Transcribed Image Text: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 0 12345 C. Project F a. Project F Project G b. Project F Project G $142,000 56,500 53,500 63,500 58,500 53,500 - Project G a. Calculate the payback period for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for both projects. (Do not round intermediate calculations and $212,000 36,500 51,500 93,500 123,500 138,500 round your answers to 2 decimal places, e.g., 32.16.) c. Which project, if any, should the company accept? years years
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