The mutually exclusive projects available

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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 11 percent. Year Project F Project G 0 –$ 129,000 –$ 199,000 1 63,000 43,000 2 47,000 58,000 3 57,000 87,000 4 52,000 117,000 5 47,000 132,000

Required: (a) Calculate the payback period for both projects.

Payback period Project F years Project G years (b) Calculate the NPV for both projects.

Net present value Project F $ Project G $ (c) Which project should the company accept?

Reference no: EM131492057

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