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Lepton Industries has a project with the following projected cash flows: Initial Cost, Year 0: $468,000...

Lepton Industries has a project with the following projected cash flows: Initial Cost, Year 0: $468,000 Cash flow year one: $135,000 Cash flow year two: $240,000 Cash flow year three: $185,000 Cash flow year four: $135,000 Plot the NPV profile of this project in Excel. Start with discount rate equal to zero and increase the discount rate by 2% increments until discount rate equal to 30%. For what discount rates would Lepton accept this project? For what discount rates would Lepton reject this project? What’s your estimate about the IRR of this project?

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jeff jeffy answered 2 years ago
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