Quark industries has a project with the following cash flows:
Cash flow year 1: $25,000
Cash flow year 2: $75,000
Cash flow year 3: $150,000
Cash flow year 4: $150,000
a. Using a 10% discount rate for this project and the NVP model, determine whether this project should be accepted or rejected.
b. Should it be accepted or rejected using a 15% discount rate?
c. Should it be accepted or rejected using a 20% discount rate?