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Homework: Capital Budgeting Assignment 2 9 points Saving... Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment.
Homework: Capital Budgeting Assignment 2 9 points Saving... 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. Project E ($34,000 Investment) Year Cash Flow Year Project H ($25,000 Investment) Cash Flow 1 $11,000 1 $15,000 eBook 2 14,000 2 14,000 3 15,000 3 12,000 4 17,000 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 12 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value Project E Project H Help Sa
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