21. NPV and Payback Period Kaleb Konstruction, Inc., has the followingmutually exclusive projects available. The company has historically used athree-year cutoff for projects. The required return is 10 percent.ΙYearProject FProject G0-$195,000-$298,000198,40071,600234586,30094,50081,600123,60072,000166,80064,800187,200a. Calculate the payback period for both projects.b.C.Calculate the NPV for both projects.Which project, if any, should the company accept?

Here, YearCash FlowsProject AProject B0 $ (195,000.00) $ (298,000.00)1 $…

21. NPV and Payback Period 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 10 percent. Year Project F Project G I 072345 -$195,000 -$298,000 1 98,400 71,600 86,300 94,500 81,600 123,600 72,000 166,800 64,800 187,200

21. NPV and Payback Period 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 10 percent. Year Project F Project G I 072345 -$195,000 -$298,000 1 98,400 71,600 86,300 94,500 81,600 123,600 72,000 166,800 64,800 187,200

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 13PROB

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