Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of$95,000and will generate net cash inflows of$20,000 per year for 11 years.

If the discount rate is 11 percent, then the project's NPV is $ _____.

a.What is the project's NPV using a discount rate of 11 percent? Should the project be accepted? Why or why not?

b.What is the project's NPV using a discount rate of 16percent? 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?