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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.

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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 ($20,000 Investment) Project H ($20,000 Investment) Cash Flow 5,000 6,000 7,000 10,000 Year Year Cash Flow $16,000 5,000 4,000 2 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 9 percent discount rate. (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value Project E Project H c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 9 percent

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