If the discount rate were 6 percent calculate the NPV of the project. Is this an economically acceptable project to undertake? Why or why not?

Given that the discount rate used in this case is 6%, we can calculate NPV as follows: NPV = $1000 / 1.06 + $1200/ 1.06^2 + $1300/1.06^3 = $2790.50.

This indicates that undertaking this project will result in a positive economic benefit – however, there are still other factors to consider before making any final decision such as risk involved, cost of capital etc. Moreover, other available opportunities should also be evaluated in order to determine if investing money into current venture provides best returns for company or not.

In conclusion, although calculating NPV helps provide insight into whether project would generate profits or not; it’s important to take into account various other elements before making any decisions.