Net present value.

Quark Industries has a project with the following projected cash flows: See data below.

a. Using a discount rate of 8% 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 19%?

Question content area bottom

Part 1

a. Using a discount rate of 8%, this project should be accepted or rejected?

Part 2

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

Part 3

c. Using a discount rate of 19%, this project should be rejected or accepted?

Initial cost: $280,000

Cash flow year one: $23,000

Cash flow year two: $78,000

Cash flow year three: $142,000

Cash flow year four: $142,000