Explanation : The question requires that NPV be found at each of the discount rates given as
answer choices. When the NPV of cash flows is negative, the project is least
likely to be undertaken.
Using a financial calculator, first enter the cash flows.
CF0 = - 900,000, CF1 = 6,344,400, CF2 = -8,520,364, CF3 = 2,245,066,
CF4 = 650,000
Then, determine the NPV for each of the given discount rates
When I = 13%, CPT NPV = -3,581
When I = 16%, CPT NPV = +34,600 When I = 18%, CPT NPV = +59,097
Hence, project will least likely be undertaken when the discount rate is 13% as
the NPV is negative, while at the other two discount rates it is positive.