Keller Construction is conside

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
($32,000 Investment) ($27,000 Investment)
Year Cash Flow Year Cash Flow
1 $ 10,000 1 $ 15,000
2 13,000 2 13,000
3 14,000 3 11,000
4 16,000

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

– Determine the net present value of the projects based on a discount rate of 9 percent.

c.If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 9 percent?

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized

Keller Construction is conside

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 Annendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project E, Project H
($42,000 Investment), ($40,000 Investment)
Year Cash Flow Year Cash Flow
1= $10,000, 1 =$21,000
2 = 15,000, 2 = 16,000
3= 21,000, 3 = 14,000
4 = 23.000
a. Determine the net present value of the projects based on a zero percent discount rate. Answer is complete but not entirely correct. Project E Project H Net Present Value s 53,000 $ 39.000
b. Determine the net present value of the projects based on a discount rate of 12 percent. (Do not round intermediate calculations and round your answers to 2 decimal places.) Answer is not complete. Net Present Value 10,261.52 Project $ Project H c. If the projects are not mutually exclusive, which project(s) would you accept if the discount rate is 12 percent? Project E Project H Both Hand E

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized