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 lft.
Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment In a hydraulic lft. Keller wishes to use a net present value proflie in comparing the projects. The investment and cash flow patterns are follows: Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods Project E Project H $45,000 Investment) ($48,000 nvestment) s 9.000 23,000 Cash F $24,000 14,000 a. Determine the net present value of the projects based on a zero percent disoount rate. Project E Project H b. Debermine the net present value of the projects based on a discount rate of 12 percent(Do not round intermediate calculiations and round your answers to 2 decimal places.) Projct E Project H 8 0
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