Question
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
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 cah inflows of $21,000 per year for 9 years.
What is the project NVP using a discount rate is 11 percent? Should the project be accepted? Why or Why not?
What is the projects NPV using a discount rate of 14%? Should the project be accepted ? why or why not?
What is the project internal rate of return? Should the project be accepted ? why or why not?
A) If the discount rate is 11 percent then the project NPV is ________
B)
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