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Determine the net present value of the projects

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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

($46,000 Investment) ($45,000 Investment)

Year  Cash Flow            Year          Cash Flow

1       $9,000                     1          $24,000

2       13,000                      2          18,000

3          23,000                   3              14,000

4            30,000

Question a. Determine the net present value of the projects based on a zero percent discount rate.

Reference no: EM132504625

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