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					Project H
($52,000 Investment)					($47,000 Investment)
Year	Cash Flow				Year	Cash Flow
1	$	10,000			1	$	27,000
2		14,000			2		19,000
3		24,000			3		15,000
4		31,000

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 9 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.)

	Net Present Value
Project E
Project H