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 B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project E (152,000 Investment) Year Cash Flow Project H (147,000 Investment) Year 1 1 $10,000 Cash Flow $27,000 37 14,000 19,000 15,eee 24,000 31,000 a. Determine the net present value of the projects based on a zero percent discount rate Net Present Value Project E Project H b. Determine the net present value of the projects based on a discount rate of 9 percent. (Do not round Intermediate calculations and round your answers to 2 decimal places.) Net Present Value Project E Project H a. Determine the net present value of the projects based on a zero percent discount rate. Net Present Value Project E Project H b. Determine the net present value of the projects based on a discount rate of 9 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 9 percent? Project E Project H Both H and E
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