Kaleb Konstruction, Inc., has the following mutually exclusive projects available. Thecompany has historically used a three-year cutoff for projects. The required return is 12percent.YearProject FProject G$131,00062,00048,00058,00053,00048,000$201,00042,00057,00088,000118,000133,000a. Calculate the payback period for both projects. (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g., 32.16.)b. Calculate the NPV for both projects. (Do not round intermediate calculations andround your answers to 2 decimal places, e.g., 32.16.)c. Which project, if any, should the company accept?a. Project FyearsProject Gyearsb. Project FProject GC.-234 5

Payback period is the amount of time required to recover initial investment. Payback period =Initial…

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 G $131,000 62,000 48,000 58,000 53,000 48,000 $201,000 42,000 57,000 88,000 118,000 133,000 a. Calculate the payback 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? riod for both projects. (Do not round intermediate a. Project F years 12345

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 G $131,000 62,000 48,000 58,000 53,000 48,000 $201,000 42,000 57,000 88,000 118,000 133,000 a. Calculate the payback 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? riod for both projects. (Do not round intermediate a. Project F years 12345

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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