Net present value. quark industries has a project with the following projected cash flows:
initial cost:
$220,000
cash flow year one:
$22,000
cash flow year two:
$78,000
cash flow year three:
$160,000
cash flow year four:
$160,000
a. using a discount rate of 10% 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 16%?
c. should the company accept or reject it using a discount rate of 21%?