Lepton Industries has four potential projects, all with an initial cost of $1,500,000. The capital budget for the year will allow Lepton to accept only one of the four projects. Given the discount rates and the future cash flows of each project, determine which project Lepton shouldaccept.

Transcribed Image Text:

Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project Q Project RProject S $350,000 $400,000 $700,000200,000 $350,000 $400,000 $600,000 400,000 $350,000 $400,000 $500,000 600,000 $350,000 $400,000 $400,000 800,000 $350,000 $400,000 $300,000 $1,000,000 Project T 4% 8% 13% 18%