1. Quark Industries has 3 potential projects all with an initial cost of $1600

1. Quark Industries has 3 potential projects all with an initial cost of $1600000. The
capital budget for the year will allow Quark to only accept one of the three projects. Given the discount rates and the future cash flow of each project
determine which project Quark should accept.

Cash Flow

Project M

Project N

Project O

Year 1

$400000

$600000

$900000

Year 2

$400000

$600000

$700000

Year 3

$400000

$600000

$500000

Year 4

$400000

$600000

$300000

Year 5

$400000

$600000

$100000

Discount Rate

10%

12%

18%