Question

P9-8 (similar to) EQuestion Help Net present value. Lepton Industries has a project with the following projected cash flows: a. Using a discount rate of 9% 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 17% ? c. Should the company accept or reject it using a discount rate of 20 %? . (Select from the drop-down menu.) a. Using a discount rate of 9%, this project should be Data Table (Click on the following iconin order to copy its contents into a spreadsheet.) Initial cost: $470,000 Cash fiow yoar one: $127.000 Cash fiow year two: $240,000 Cash flow year three: $192,000 Cash flow year four: S127,000 Print Done

Answer 1

Year	Project Cash Flows (i)	DF@ 9%	DF@ 9% (ii)	PV of Project ( (i) * (ii) )	DF@ 17% (iii)	PV of Project ( (i) * (iii) )	DF@ 20% (iv)	PV of Project ( (i) * (iv) )
0	-470000	1	1	(4,70,000.00)	1	(4,70,000.00)	1	(4,70,000.00)
1	127000	1/((1+9%)^1)	0.917	1,16,513.76	0.855	1,08,547.01	0.833	1,05,833.33
2	240000	1/((1+9%)^2)	0.842	2,02,003.20	0.731	1,75,323.25	0.694	1,66,666.67
3	192000	1/((1+9%)^3)	0.772	1,48,259.23	0.624	1,19,879.15	0.579	1,11,111.11
4	127000	1/((1+9%)^4)	0.708	89,970.00	0.534	67,773.56	0.482	61,246.14
		NPV		86,746.19	NPV	1,522.96	NPV	(25,142.75)
Ans a)	86,746.19
b)	1,522.96
c)	(25,142.75)