Question
(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 $90,000 and will generate net cash inflows of $19000 per year for 9 years.
a what is the projects NPV using a discount rate of 7%? Should the project be accepted? Why or why not
b. What is the projects NPV using the discount rate of 14%? Should the project be accepted? Why or why not
c What is the projects internal rate of return? Should the project be accepted? Why or why not
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