FIN 325 Corporate Finance Spring 2017 Ibrahim Amusa 5/24/17 11:49 AM Test: final FIN 325 TIme Limit 05.0000 Submit Test This Question: 1 pt 2 of 19 (9 complete) This Test: 19 pts possible (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase ofanew plastic stamping machine. This nvestment equires an initial outlay of $95.000 and will generate net cash inflows of $16.000 per year for 11 years. a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 17 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. the discount rate is 8 percent, then the project's NPV is s (Round to the nearest dollar) The project accepted because the NPV is and therefore value to the firm. (Select from the drop-down menus) b. If the discount rate is 17 peroent, then the project's NPv is s l. (Round to the nearest donar) value to the firm. (Select from the drop-down menus.) accepted because the NPV is and therefore The project (Round to two decimal places) c. This project's internal rate of return is Yl the reauired discount rado. Aselect from me if the Droiects reauired disoount rate is 8%. then the Droiect acceoted, because the IRR is Enter your answer in each of the answer boxes. 70 General and administrative expense NET PROFIT