Keller

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 Project H ($33,000 Investment) ($33,000 Investment) Cash Flow S 8,000 11,000 17,000 19,000 Year Cash Flow $15,000 17,000 16,000 Year 2 a. Determine the net present value of the projects based on a zero percent discount rate 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