Question: Keller Construction is considering two new investments. Project E calls for the purchase of earth moving equipment. Project H represents an investment in a hydraulic
Keller Construction is considering two new investments. Project E calls for the purchase of earth moving 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. Project E Project H ($54,000 investment) ($48,000 investment) Year Cash flow Year Cash flow 1 $ 12,000 1 $ 24,000 2 16,000 2 17,000 3 26,000 3 18,000 4 33,000 (a) Determine the net present value of the projects based on a zero discount rate. (Omit the "$" sign in your response.) Net present value Project E $ Project H $
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