Problem 8-21 NPV and Payback Period [LO 1, 4]

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 14 percent.

Year	Project F		Project G
0	$	133,000	$	203,000
1		61,000		41,000
2		49,000		56,000
3		59,000		89,000
4		54,000		119,000
5		49,000		134,000

Required:

(a)	Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Payback period
Project F	years
Project G	years

(b)	Calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Net present value
Project F	$
Project G	$

(c)	Which project should the company accept?
	(Click to select)Project FProject G