Yetter Electronics is considering two new investments. Project C calls for the purchase of a coolant recovery system. Project H represents and investment ina heat recovery system. The company wants to use a net present value profile to compare the projects. The cash flow and investment patterns are as follows:
Project C Project H
($25,000 investment) ($25,000 investment)
Year Cash Flow Year Cash Flow
1 $6,000 1 $20,000
2 $7,000 2 6,000
3 $9,000 3 5,000
4 $12,000
A. Determine the net present value of the projects based on a zero discount rate
B. Determine the net present value of the projects based on 9% discount rate.