Net present

value.

Lepton Industries has a project with the following projected cash flows:

Initial cost: $470,000 Cash flow year one: $131,000 Cash flow year two: $220,000 Cash flow year three: $180,000 Cash flow year four: $131,000

a.Using a discount rate of

10%

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 discount rate of

17%?

c.Should the company accept or reject it using a discount rate of

22%?

a.Using a discount rate of 10%, this project should be accepted or rejected?

b.Using a discount rate of 17%, this project should be accepted or rejected?

c.Using a discount rate of 22%, this project should be accepted or rejected?