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					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 percent discount rate.

b. Determine the net present value of the projects based on a discount rate of 11 percent