(Click on the following icon in order to copy its contents into a spreadsheet.) Initial cost: $200,000 Cash flow year one: $21,000 Cash flow year two: $76,000 Cash flow year three: $159,000 Cash flow year four: $159,000
(Click on the following icon in order to copy its contents into a spreadsheet.) Initial cost: $200,000 Cash flow year one: $21,000 Cash flow year two: $76,000 Cash flow year three: $159,000 Cash flow year four: $159,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:ng projected cash flows: im
el, determine whether the company should accept or reject this project.
13%?
199
- X
i Data Table
(Click on the following icon
in order to copy its contents into a spreadsheet.)
Initial cost $200,000
Cash flow year one: $21,000
Cash flow year two: $76,000
Cash flow year three: $159,000
Cash flow year four: $159,000
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Transcribed Image Text:et present value. Quark Industries has a project with the following projected cash flows:
Using a discount rate of 11% for this project and the NPV model, determine whether the company should accept or reject this project.
Should the company accept or reject it using a discount rate of 13%?
Should the company accept or reject it using a discount rate of 19%?
. Using a discount rate of 11%, this project should be
(Select from the drop-down menu.)
rejected
аcсepted
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