Net Present Value (NPV) Calculation Project Data:

• Initial Investment: $500,000
• Year 1 Cash Flow: $100,000
• Year 2 Cash Flow: $150,000
• Year 3 Cash Flow: $200,000
• Year 4 Cash Flow: $250,000
• Discount Rate: 10%

Requirements:

• Calculate the NPV of the project.
• Determine whether the project should be accepted based on NPV.
• Explain the importance of discount rate in NPV calculation.
• Discuss the impact of increasing the discount rate to 15% on NPV.