Question: 1. Quark Industries has 3 potential projects, all with an initial cost of $1,600,000. The capital budget for the year will allow Quark to only
1. Quark Industries has 3 potential projects, all with an initial cost of $1,600,000. The capital budget for the year will allow Quark to only accept one of the three projects. Given the discount rates and the future cash flow of each project, determine which project Quark should accept.
| Cash Flow | Project M | Project N | Project O |
| Year 1 | $400,000 | $600,000 | $900,000 |
| Year 2 | $400,000 | $600,000 | $700,000 |
| Year 3 | $400,000 | $600,000 | $500,000 |
| Year 4 | $400,000 | $600,000 | $300,000 |
| Year 5 | $400,000 | $600,000 | $100,000 |
| Discount Rate | 10% | 12% | 18% |
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