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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 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 us 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 ($44,000 Investment) Cash Flow $10,000 15,000 Project H ($40,000 Investment) Cash Flow Year Year 1 1 $20,000 19,000 15,000 28.000 zero percent discount rate. a. Determine the net present value of the projects based on 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.) Project E Project H
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