Question: Net present value Quark Industries has a project with the following projected cash flows: Initial cost $220,000 Cash flow year one: $20,000 Cash flow year
Net present value Quark Industries has a project with the following projected cash flows: Initial cost $220,000 Cash flow year one: $20,000 Cash flow year two: $76,000 Cash flow year three: $157,000 Cash flow year four: $157,000 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 13%? C. Should the company accept or reject it using a discount rate of 22%? a. Using a discount rate of 8%, this project should be accepted (Select from the drop-down menu) b. Using a discount rate of 13%, this project should be accepted. (Select from the drop-down menu ) c. Using a discount rate of 22%, this project should be accepted" (Select from the drop-down menu)
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