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: UseAppendix Bfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project EProject H($41,000 Investment)($42,000 Investment)YearCash FlowYearCash Flow1$11,0001$23,000216,000217,000322,000315,000424,000

a.Determine the net present value of the projects based on a zero percent discount rate.

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.)

c.If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 9 percent?

Project EProject HBoth H and E