(Calculating NPV) Big Steve’s Swizzle Sticks is considering the purchase of a new plastic-stamping machine. This investment will require an initial outlay of $100,000 and will generate net cash inflows of $18,000 per year for 10 years.

a. What is the project’s NPV using a discount rate of 12 percent? Should the project be accepted? Why or why not?

b. What is the project’s NPV using a discount rate of 13 percent? Should the project be accepted? Why or why not?

c. What is this project’s IRR? Should the project be accepted? Why or why not?