Initial cost:

$469,000

Cash flow year one:

$126,000

Cash flow year two:

$200,000

Cash flow year three:

$190,000

Cash flow year four:

$126,000

Net present

value.

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

LOADING...

.a. Using a discount rate of

11%

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

19%?

a. Using a discount rate of

11%,

this project should be

accepted

rejected

.