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

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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.
Ι
Year
Project F
Project G
0
-$195,000
-$298,000
1
98,400
71,600
2345
86,300
94,500
81,600
123,600
72,000
166,800
64,800
187,200
a. Calculate the payback period for both projects.
b.
C.
Calculate the NPV for both projects.
Which project, if any, should the company accept?
Transcribed Image Text: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. Ι Year Project F Project G 0 -$195,000 -$298,000 1 98,400 71,600 2345 86,300 94,500 81,600 123,600 72,000 166,800 64,800 187,200 a. Calculate the payback period for both projects. b. C. Calculate the NPV for both projects. Which project, if any, should the company accept?
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