FIN 419 ASSIST Perfect Education/fin419assist.cofi FIN 419 ASSIST Perfect Education/fin419assist.cofi | Page 40

Quark Industries has a project with the following projected cash
flows:
a.
Using a discount rate of 9%
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 17%?
c.
Should the company accept or reject it using a discount rate
of 18%?
P9-8 (similar to)
Net present value. Lepton Industries has a project with the
following projected cash flows:
Initial cost: $470,000
Cash flow year one: $121,000
Cash flow year two: $260,000
Cash flow year three: $181,000
Cash flow year four: $121,000