Financial management

Kelier 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: Project E ($20,000 Investment) Project H ($20,000 investment) Year Cash Flow Year 1 Cash Flow 1 2 $5,000 6,000 3 2. 7 000 $16,000 5,000 4,000 3 10,000 a. Determine the net present value of the projects based on a 9 percent discount rate [2 marks] Determine the internal rate of return of the projects. [1 mark] If the two projects are not mutually exclusive, what would your acceptance or rejection decision be the discount rate is 8 percent? [1 mark estion Project E ($20,000 Investment) Year Cash Flow Year Project H ($20,000 investment) Cash Flow $16,000 5,000 $5,000 6,000 1.... 2 2. 3 7.000 3 10,000 4,000 a Determine the net present value of the projects based on a 9 percent discount rate, [2 marks] b. Determine the internal rate of return of the projects. [1 mark] c If the two projects are not mutually exclusive, what would your acceptance or rejection decision be if the discount rate is 8 percent? [1 mark] d If the two projects are mutually exclusive, what would be your decision if the discount rate is 14 percent? [1 mark)