(NPV with varying required rates of return) Big Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $100,000 and will generate free cash inflows of $18,000 per year for 15 years. a. If the required rate of return is 7 percent, what is the project's NPV? b. If the required rate of return is 20 percent, what is the project's NPV? c. Would the project be accepted under part (a) or (b)? d. What is the project's IRR? a. If the required rate of return is 7 percent, the project's NPV is $ (Round to the nearest cent.) b. If the required rate of return is 20 percent, the project's NPV is \$. (Round to the nearest cent.) c. Based on the NPV criterion, the project under part (a) should be because its NPV is if the required rate of return is 7 percent. (Select from the drop-down menus.) Based on the NPV criterion, the project under part (b) should be because its NPV is if the required rate of return is 20 percent. (Select from the drop-down menus.) d. The project's IRR is %. (Round to two decimal places.) the required rate of return is 20 percent, what is the project's NPV? lould the project be accepted under part (a) or (b)? /hat is the project's IRR? the required rate of return is 7 percent, the project's NPV is $. (Round to the nearest cent.) f the required rate of return is 20 percent, the project's NPV is $. (Round to the nearest cent.) Based on the NPV criterion, the project under part (a) should be percent. (Select from the drop-down menus.) sed on the NPV criterion, the project under part (b) should be because its NPV is percent. (Select from the drop-down menus.) NPV is The project's IRR is %. (Round to two decimal places.) accepted a. If the required rate of return is 7 percent, the project's NPV is $. (Round to the nearest cent.) b. If the required rate of return is 20 percent, the project's NPV is $ (Round to the nearest cent) c. Based on the NPV criterion, the project under part (a) should be because its NPV is if the required rate of return is 7 percent. (Select from the drop-down menus.) Based on the NPV criterion, the project under part (b) should be because its NPV is d rate of return is 20 percent. (Select from the drop-down menus.) d. The project's IRR is \%. (Round to two decimal places.) (NPV with varying required rates of return) Big Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $100,000 and will generate free cash inflows of $18,000 per year for 15 years. a. If the required rate of return is 7 percent, what is the project's NPV? b. If the required rate of return is 20 percent, what is the project's NPV? c. Would the project be accepted under part (a) or (b)? d. What is the project's IRR? a. If the required rate of return is 7 percent, the project's NPV is $. (Round to the nearest cent.) b. If the required rate of return is 20 percent, the project's NPV is \$ (Round to the nearest cent.) c. Based on the NPV criterion, the project under part (a) should be is 7 percent. (Select from the drop-down menus.) Based on the NPV criterion, the project under part (b) should be 20 percent. (Select from the drop-down menus.) d. The project's IRR is \%. (Round to two decimal places.) rejected accepted (NPV with varying required rates of retum) Big Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial cutlay of $100,000 and will generate free cash inflows of $18,000 per year for 15 years. a. If the required rate of return is 7 percent, what is the project's NPV? b. If the required rate of return is 20 percent, what is the project's NPV? c. Would the project be accepted under part (a) or (b)? d. What is the project's IRR? a. If the required rate of retum is 7 percent, the project's NPV is \$ (Round to the nearest cent.) b. If the required rate of return is 20 percent, the project's NPV is $ (Round to the nearest cent.) c. Based on the NPV criterion, the project under part (a) should be_ because its NPV is if the required rate of return is 7 percent. (Select from the drop-down menus.) Based on the NPV criterion, the project under part (b) should be_ because its NPV is if the required rate of retum is 20 percent. (Select from the drop-down menus.) d. The project's IRR is \%. (Round to two decimal places.)