Net Present Value – Swanson Industries has a project

$1.50

Net Present Value – Swanson Industries has a project with the following projected cash flows:

Initial Cost, Year 0: $240,000

Cash flow year one: $25,000

Cash flow year two: $75,000

Cash flow year three: $150,000

Cash flow year four: $150,000

  1. Using a 10% discount rate for this project and the NPV model should this project be accepted or rejected?
  2. Using a 15% discount rate?
  3. Using a 20% discount rate?