(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

$110,000

and will generate net cash inflows of

$20,000

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

16

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

8

percent, then the project's NPV is

$3277932779.

(Round to the nearest dollar.) The project

should be

accepted because the NPV is

positive

and therefore

adds

value to the firm.(Select from the drop-down menus.)b.If the discount rate is

16

percent, then the project's NPV is

$negative 94279427.

(Round to the nearest dollar.) The project

should not be

accepted because the NPV is

negative

and therefore

does not add

value to the firm.(Select from the drop-down menus.)c.This project's internal rate of return is

enter your response here%.

(Round to two decimal places.)