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Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $95,000 and
Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $95,000 and will generate net cash inflows of $17,000 per year for 11 years.
(Net present value calculation) Big Swe's, makers of witte ich, comidering the purchase of a new plade amor mare This investment requires and stayer S96.000 and will prentarat cah Wow $17.000 per year for 11 years What is the project NPV a discount rate of percent? Should the projecte ed? Why or wyron b. What is the prope's NPV using a discount role of 16 percent? Should the project be why why not? c. What is this project's intamal rate of tum? Should the project bec? Why why not? e decount the line 7 percent. then the project NPV and to the rear dow) a. What is the project's NPV using a discount rate of 7 percent? Should the project be accepted? Why or why not?
b. What is the project's NPV using a discount rate of 16 percent? Should the project be accepted? Why or why not?
c. What is the project's internal rate or return? Should the project be accepted? Why or why not?
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