Question: Net present value. Quark Industries has three potential projects, all with an initial cost of $1,900,000. The capital budget for the year will allow Quark


Net present value. Quark Industries has three potential projects, all with an initial cost of $1,900,000. 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 in the following table, 3. determine which project Quark should accept. Which project should Quark accept? (Select the best response.) Data Table ho -X O A. Project O O B. Project M OC. Project N OD. None of the projects (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project M $500,000 $500,000 $500,000 $500,000 $500,000 9% Project N $600,000 $600,000 $600,000 $600,000 $600,000 14% Project O $1,000,000 $800,000 $600,000 $400,000 $200,000 15% NPV profile of a project. Given the following cash flow of Project L-2, draw the NPV profile. Hint: Be sure to use a discount rate of zero for one intercept (y-axis) and solve for the IRR for the other intercept (x-axis). (Click on the following icon in order to copy its contents into a spreadsheet.) Year 0 = - $290,000 Year 1 = $42,000 Year 2 = $75,000 Year 3 = $112,000 Year 4 = $ 138,000 What is the NPV of Project L-2 where zero is the discount rate? $ 77000.00 (Round to the nearest dollar.) What is the IRR of Project L-2? []% (Round to two decimal places.)
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