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Keller Construction is considering two new investments Project E calls for the purchase of earthmoving equipment Project Hrepresents an investment in a hydraulic lift. Keller

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Keller Construction is considering two new investments Project E calls for the purchase of earthmoving equipment Project Hrepresents 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 Project (552,600 Investment) (547,000 Investment) Cash Flow Cash Flow $10,000 $27,000 14,000 19,000 24,000 15,000 31,800 Year 2 2 Year 1 2 3 a. Determine the net present value of the projects based on a zero percent discount rate, Net Present Value Projecte Project 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 Projecte Project H c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 9 percent? Project E Project H Both Hand E

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