Net present value. Lepton Industries has three potential​ projects, all with an initial cost of ​$2,300,000. The capital budget for the year will allow Lepton to accept only one of the three projects. Given the discount rate and the future cash flow of each​ project, determine which project Lepton should accept.     Cash Flow Project Q Project R Project S     Year 1 ​ $600,000   ​$800,000   ​$1,200,000     Year 2 ​$600,000   ​$800,000   ​$1,000,000     Year 3 ​$600,000   ​$800,000   ​$800,000     Year 4 ​$600,000   ​$800,000   ​$600,000     Year 5 ​$600,000   ​$800,000   ​$400,000     Discount rate 9​% 11​% 16​%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Net present
value.
Lepton Industries has three potential​ projects, all with an initial cost of
​$2,300,000.
The capital budget for the year will allow Lepton to accept only one of the three projects. Given the discount rate and the future cash flow of each​ project, determine which project Lepton should accept.
 
  Cash Flow
Project Q
Project R
Project S
 
  Year 1
​ $600,000
 
​$800,000
 
​$1,200,000
 
  Year 2
​$600,000
 
​$800,000
 
​$1,000,000
 
  Year 3
​$600,000
 
​$800,000
 
​$800,000
 
  Year 4
​$600,000
 
​$800,000
 
​$600,000
 
  Year 5
​$600,000
 
​$800,000
 
​$400,000
 
  Discount rate
9​%
11​%
16​%
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