Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of

$21,000 per year for 11 years.

a. What is the project's NPV using a discount rate of 9 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 internal rate of return? Should the project be accepted? Why or why not?

a. If the discount rate is 9 percent, then the project's NPV is $. (Round to the nearest dollar.)

Homework: 3-1 Net present als cation Software considering the purchase of a new ramach. This wily of 50.000 and will be net cash flows 52100 years What is the gate per Showbed Why why not? Wulga scout Should the per Why why? With oum? Should there why why not? and other done that Net prontale calculation Big Steve's makers of wizieck, contidering the purchase of a new pluific titaniping machine. This ismert ugares tinta ute of $90.000 and will generate it and downs of What is the project count of percent Should me probe accepted? Why or why not? What the NPV using discount of 15 percent Should the project become Who or why no What is this projectoral rate ofrutan? Should the project be comple? Why or why? e discount one in percent, then the project NPV Round to the worstol