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 12445 C. a. Project F Project G b. Project F Project G Project F $127,000 64,000 46,000 56,000 51,000 46,000 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 round your answers to 2 decimal places, e.g., 32.16.) c. Which project, if any, should the company accept? $197,000 44,000 59,000 86,000 116,000 131,000 years years

Intermediate Financial Management (MindTap Course List)
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Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 11MC: In an unrelated analysis, you have the opportunity to choose between the following two mutually...
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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
O
12345
C.
2
Project F
a. Project F
Project G
b. Project F
Project G
$127,000
64,000
46,000
56,000
51,000
46,000
Project G
$197,000
44,000
59,000
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
86,000
116,000
131,000
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 O 12345 C. 2 Project F a. Project F Project G b. Project F Project G $127,000 64,000 46,000 56,000 51,000 46,000 Project G $197,000 44,000 59,000 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 86,000 116,000 131,000 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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