Net present value. Quark Industries has three potential projects, all with an initial cost of $1,700,000. The capital budget for the year will allow Quark to accept only one of the three projects. Given the discount rate 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% 13% 18%

Which project should Quark accept?