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Net present value. Lepton Industries has four potential projects, all with an initial cost of $1,500,000. The capital budget for the year will allow Lepton
Net present value. Lepton Industries has four potential projects, all with an initial cost of $1,500,000. The capital budget for the year will allow Lepton to accept only one of the four projects. Given the discount rate and the future cash flow of each project, determine which project Lepton should accept. Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project Q $350,000 $350,000 $350,000 $350,000 $350,000 4% Project R $400,000 $400,000 $400,000 $400,000 $400,000 5% Project S $700,000 $600,000 $500,000 $400,000 $300,000 13% Project T $200,000 $400,000 $600,000 $800,000 $1,000,000 18% Which project should Lepton accept? (Select the best response.) A. None of the projects O B. Project S O C. Project Q O D. Project T OE. Project R
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