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use excel / excel formula to answer the following: LOI, L04 21. NPV and Payback Period Kaleb Konstruction, Inc., has the following mutually exclusive projects

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LOI, L04 21. 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 G -$298,000 0 1 71,600 Project F -$195,000 98,400 86,300 81,600 72.000 2 94.500 3 123,600 4 166,800 187,200 S 64.800 a. Calculate the payback period for both projects. b. Calculate the NPV for both projects. c. Which project, if any, should the company accept? LO3, L04 25. Calculating IRR A project has the following cash flows: Year 0 Cash Flow $112.000 - 67,000 - 57,000 1 2 What is the IRR for this project? If the required return is 10 percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is 0 percent? 24 percent? What is going on here? Sketch the NPV profile to help you with your answer LO4 28. NPV Valuation The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep. business is looking up." As a result, the cemetery project will provide a net cash inflow of $164,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4.7 percent per year forever. The project requires an initial investment of $1.825,000 a. If the company requires a return of 12 percent on such undertakings, should the cemetery business be started? b. The company is somewhat unsure about the assumption of a 4.7 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of 12 percent on its investment

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