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Net present value. Quark Industries has a project with the following projected cash flows: Initial cost: $270,000 Cash flow year one: $21,000 Cash flow year
Net present value. Quark Industries has a project with the following projected cash flows: Initial cost: $270,000 Cash flow year one: $21,000 Cash flow year two: $70,000 Cash flow year three: $150,000 Cash flow year four: $150,000 a. Using a discount rate of 10% 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 15%? C. Should the company accept or reject it using a discount rate of 21%
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