Net present value. Quark Industries has a project with the following projected cash flows: Initial cost: $280,000 Cash flow year one: $30,000 Cash flow year two: $80,000 Cash flow year three: $153,000 Cash flow year four: $153,000 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 15%?c. Should the company accept or reject it using a discount rate of 18%?

Net present value. Quark Industries has a project with the following projected cash flows: Initial cost: $280,000 Cash flow year one: $30,000 Cash flow year two: $80,000 Cash flow year three:...

Net present

value.

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

Initial cost:

$280,000

Cash flow year one:

$30,000

Cash flow year two:

$80,000

Cash flow year three:

$153,000

Cash flow year four:

$153,000

a. Using a discount rate of

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

15%?

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

18%?

Jun 08, 2022