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NPV and Payback Period. Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company...

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

0               −$180,000            -$280,000

1                93,600                 64,800

2                64,800                  86,400

3                81,600                  123,600

4                72,000                  166,800

5               64,800                   187,200

*All calculations must be in EXCEL.

a.Calculate the payback period for both projects.

b.Calculate the NPV for both projects.

c.Which project, if any, should the company accept NPV and Payback Period.

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