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Please do not show work and answers in handwriting, because I do not always understand what is written. Thank you so much! Keller Construction is
Please do not show work and answers in handwriting, because I do not always understand what is written. Thank you so much!
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 ($25,000 Investment) Project H ($27,000 Investment) Cash Flow 6,000 9,000 10,000 13,000 Year Year Cash Flow $18,000 9,000 7,000 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 9 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) Project E Project HStep by Step Solution
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