Can I get Reassurance on this question?

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

Initial Cost, Year 0: $468,000

Cash flow year one: $135,000

Cash flow year two: $240,000

Cash flow year three: $185,000

Cash flow year four: $135,000

Using the NPV profile of this project, for what discount rates would Lepton accept this project?

(Hint: To plot the NPV profile, start with discount rate equal to zero and increase the discount rate by 2% increments until discount rate equal to 30%.)

		Below 16%
		Below 20%
		Over 16%
		Over 20%

QUESTION 19

Using the information in the previous question (Lepton Industries), what's your best estimate about the IRR of the project?

		16% < IRR < 20%
		12% < IRR < 16%
		20% < IRR < 24%
		IRR < 16%