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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 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 ($24,e00 Investment) Cash Flow Project H ($24,000 Investment) Cash Flow Year Year $ 6,000 8,000 9,000 1 $17,000 6,000 5,00e 2 3 4 12,e0e 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
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