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2. Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic

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2. Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value profile in comparing the projects. Evaluate the best project using the investment and cash flow patterns given below. Project E($52,000 Investment)Project H($47,000 Investment) a. Evaluate the net present value of the projects based on a zero percent discount rate. (4 marks) b. Evaluate the net present value of the projects based on a discount rate of 9 percent. (4 marks) Note: Do not round intermediate calculations and round your answers to 2 decimal places. c. If the projects are not mutually exclusive, evaluate which project(s) would you accept if the discount rate is 9 percent? (2 marks)

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