Net present value. Quark Industries has three potential projects, all with an initial cost of $1,600,000. The capital budget for the year will allow Quark to accept only one of the three projects. Given the discount rate and the future cash flow of each project, determine which project Quark should accept. Cash Flow Project M Project N Project O Year 1 $400,000 $500,000 $900,000 Year 2 $400,000 $500,000 $700,000 Year 3 $400,000 $500,000 $500,000 Year 4 $400,000 $500,000 $300,000 Year 5 $400,000 $500,000 $100,000 Discount rate 10% 14% 16% Which project should Quark accept?(Select the best response.) A. Project M B. Project O C. Project N D. None of the projects

NPV unequal lives.

Singing Fish Fine Foods has $1,820,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $550,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $530,000 for the next six years. If the appropriate discount rate for the deli expansion is 9.3% and the appropriate discount rate for the wine section is 9.1%, use the NPV to determine which project Singing Fish should choose for the store. Adjust the NPV for unequal lives with the equivalent annual annuity. Does the decision change?

If the appropriate discount rate for the deli expansion is

9.3%, what is the NPV of the deli expansion?

$

(Round to the nearest cent.)