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9 Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic
9 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. The investment and cash flow patterns are as follows: Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. 2 points eBook Project E ($50,000 Investment) Year Cash Flow 1 $14,000 2 17,000 3 22,000 4 29,000 Project H ($42,000 Investment) Year Cash Flow 1 $23,000 2 17,000 3 13,000 Print a. Determine the net present value of the projects based on a zero percent discount rate. Net Present Value Project E Project H b. Determine the net present value of the projects based on a discount rate of 13 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 13 percent? O Project E O Project H O Both Hand E
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