Respuesta :
a. The net present value of project E based on a 0% discount rate is $16,000
The net present value of project H based on an 11% discount rate is $11,000
b. The net present value of project E based on a 0% discount rate is  $4,790.32
The net present value of project H based on an 11% discount rate is $4,366.70
Net present value is the present value of after-tax cash flows from an investment less the amount invested. Â
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable. Â
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
NPV can be calculated using a financial calculator
Project E
Cash flow in year 0 = -30,000
Cash flow in year 1 = $8,000
Cash flow in year 2 = $11,000
Cash flow in year 3 = $12,000
Cash flow in year 4 = $15,000
NPV when I is 0% = $16,000
NPV when I is 11% = $4,366.70
Project H
Cash flow in year 0 = $-28,000
Cash flow in year 1 = $17,000
Cash flow in year 2 = $12,000
Cash flow in year 3 = $10,000
NPV when I is 0% = $11,000
NPV when I is 11% = $4,366.70
To determine NPV using a financial calculator take the following steps:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction. Â
3. Press compute Â
For more information on net present value, check here : https://brainly.com/question/16528949?referrer=searchResults
