Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel.

Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph.

Triangle

Polygon

$(?)$

Polygon

$($Net present value calculation$)$ Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $$95,000$ and will generate net cash inflows of $$19,000$ per year for $11$ years.

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 $13$ 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 $11$ percent, then the project's NPV is $$.($Round to the nearest dollar.$)$