Hello, can you please answer this problem with excel and formulas, thank you! 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 0 –$135,000 –$205,000 1 60,000 40,000 2 50,000 55,000 3 60,000 90,000 4 55,000 120,000 5 50,000 135,000 a. Calculate the payback period whitout PV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16) b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16) c. Which project, if any, should the company accept? just write the letter.
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
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Hello, can you please answer this problem with excel and formulas, thank you!
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 | ||
| 0 | –$135,000 | –$205,000 | ||
| 1 | 60,000 | 40,000 | ||
| 2 | 50,000 | 55,000 | ||
| 3 | 60,000 | 90,000 | ||
| 4 | 55,000 | 120,000 | ||
| 5 | 50,000 | 135,000 |
a. Calculate the payback period whitout PV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16)
b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16)
c. Which project, if any, should the company accept? just write the letter.
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