Question: 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 8 for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Project ($50,000 Investment Cash Flow $14,000 2 17.000 3 22,000 29.000 Project $12,000 Investment) Year Cash Flow $23,000 2 17.000 3 13,000 o. Determine the net present value of the projects based on a zero percent discount rate, Net Present Value Project E Project b. Determine the net present value of the projects based on a discount rate of 13 percent. (Do not round intermediate calculations 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 13 percent? O Project E O Project H O Both Hand
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