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please help with a, b, and c. Thank you! (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a
please help with a, b, and c. Thank you!
(Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investrient requires an initial outlay of $105,000 and will generate net cash inflows of $20,000 per year for 9 years a. What is the project's NPV using a discount rate of 9 percent? Should the project be acceptad? Why or why not? b. What is the project's NPV using a discount rate of 13 percent? Should the project be accopted? Why or why not? c. What is this project's internal rate of return? Should the projoct be accopted? Why of why not? a. If the discount rate is 9 percent, then the projecrs NPV is $ (Round to the nearest dollar) Step by Step Solution
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