Business, 11.08.2021 18:40 jokerr5584

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: Project E Project H
($30,000 Investment) ($28,000 Investment)
Year Cash Flow Year Cash Flow
1 $8,000 1 $17,000
2 11,000 2 12,000
3 12,000 3 10,000
4 15,000

Required:
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.

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Keller Construction is considering two new investments. Project E calls for the purchase of earthmov...

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