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Please help me answer last two parts Thank you C.This project's internal rate of return is 8.74%. (Round to two decimal places.) If the project's
Please help me answer last two parts Thank you C.This project's internal rate of return is 8.74%. (Round to two decimal places.) If the project's required discount rate is 7%, then the project should be accepted, because the IRR is higher than the required discount rate.(Select from the drop-down menus.) If the project's required discount rate is 17%, then the project (should not be or shoud be) accepted, because the IRR is (higher than or lower than) the required discount rate.(Select from the drop-down menus.)
(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 $95,000 and will generate net cash inflows of $17,000 per year for 8 years. a. What is the project's NPV using a discount rate of 7 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 17 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 7 percent, then the project's NPV is $ (Round to the nearest dollar.) The project accepted because the NPV is and therefore value to the firm. (Select from the drop-down menus.) b. If the discount rate is 17 percent, then the project's NPV is $ (Round to the nearest dollar.) The project accepted because the NPV is and therefore value to the firm. (Select from the drop-down menus.) c. This project's internal rate of return is \%. (Round to two decimal places.) If the project's required discount rate is 7%, then the project accepted, because the IRR is the required discount rate. (Select from the drop-down menus.) If the project's required discount rate is 17%, then the project accepted, because the IRR is the required discount rate. (Select from the drop-down menus.)Step by Step Solution
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