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Lepton Industries has a project with the following projected cash flows: Initial cost: $470,000 Cash flow year one: $120,000 Cash flow year two: $300,000 Cash
Lepton Industries has a project with the following projected cash flows:
Initial cost: $470,000
Cash flow year one: $120,000
Cash flow year two: $300,000
Cash flow year three: $193,000
Cash flow year four: $120,000
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 14%?
c. Should the company accept or reject it using a discount rate of 22%?
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