Quark Industries has a project with the following projected cash flows:
Initial Cost, Year 0: $240,000
Cash flow year one: $25,000
Cash flow year two: $75,000
Cash flow year three: $150,000
Cash flow year four: $150,000
a. Using a 10% discount rate for this project and the NPV model, determine whether the company should accept or reject this project?
b. Should the company accept or reject it using a 15% discount rate?
c. Should the company accept or reject it using a 20% discount rate?