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[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
[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 $105000 and will generate net cash inows of $20,000 per year tort1 years. a. What is the proiect's NF'V uSing a discount rate ofB percent? Should the proiect be accepted? Why orwhy not? b. What is the project's NPV using a discount rate of 17 percent? Should the proiect be accepted? Why prwhy not'Fr c. What is this project's internal rate of return? Should the project be accepted? Why or why not? a. ltthe discount rate is 8 percent. then the project's NPV is $ 37779285 (Round to the nearest dollar.) The project should he accepted because the NPV is positive and therefore adds value to the rm (Select from the drop-down menus ) b. lfthe discount rate is 17 percent then the project's NPV is $ *827113 . (Round to the nearestdpllar) The project should not be accepted because the NPV is negative and therefore does not add value to the rm (Select from the dropdpwn menus.) D. This proiect's internal rate of return is %. (Round to two decimal places.)
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