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Net present value . Lepton Industries has a project with the following projected cash?flows: Initial?cost: ?$470,000 Cash flow year?one: ?$125,000 Cash flow year?two: ?$220,000 Cash
Net present value. Lepton Industries has a project with the following projected cash?flows:
Initial?cost: ?$470,000
Cash flow year?one: ?$125,000
Cash flow year?two: ?$220,000
Cash flow year?three: ?$180,000
Cash flow year?four: ?$125,000
a.??Using a discount rate of 12?% 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 21?%?
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