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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.

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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 wishes to use a net present value profile in comparing the projects. The investment and cash flow patterns are as follows: Use Arpendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project E Project (552,000 Investment) (547,000 Investment) Year Cash Flow Year Cash Flow $10,000 $27,000 14,000 19.000 24,000 15.000 31,000 1 2 1 2 3 4 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 Projecte Project 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 ca and round your answers to 2 decimal places.) Net Present Value Project E Project H c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 9 percent? O Project E O Project H O Both Hand E

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