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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 10
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 for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Payback period | |
Project F | years |
Project G | years |
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