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(Net present value calculation) Big Steve's makers of swazlo sticks, considering the purchase of a new plastic stamping machine. This investment requires an initial outlayot

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(Net present value calculation) Big Steve's makers of swazlo sticks, considering the purchase of a new plastic stamping machine. This investment requires an initial outlayot $95 000 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 11 percent? Should the project be accepted? Why or why not? b. What is the projects NPV using a discount rate of 16 percent? Should the project be accepted? Why or why not? c. What is this projects internal rate of return? Should the project be accepted? Why or why not? 2. If the discount attes 15 percent, then the proyec's NPViss Round to the nearest dollar) (Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc and he is analyzing two alternative configurations for the firm's new plasma Cutter shop. The two alternatives denoted A and B below, will perform the same task, but alternative A will cost $75,000 to purchase, while alternative will cost only 560,000 Moreover, the two alternatives will have very different cash flows and useful lives. The after tax costs for the two projects are as follows a. Calculate each project's EAC given a discount rate of 12 percent b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 12% is (Round to the nearest cont)

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