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 $150,000 $235,000
1 78,000 54,000
2 54,000 72,000
3 68,000 103,000
4 60,000 139,000
5 54,000 156,000
Required:
a. Calculate the payback period for both projects.
b. Calculate the NPV for both projects.
