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​%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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​%?
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