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 Ap pendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Determine the net present value of the projects based on a zero percent discount rate. b. Determine the net present value of the projects based on a discount rate of 11 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 11 percent? Project E Project H Both H and E
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