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please type answer (NPV with varying required rates of return) Big Steve's, a maker of swizzle sticks, is considering the purchase of a new plastic
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(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 $120,000 and will generate free cash inflows of $18,000 per year for 10 years. a. If the required rate of return is 8 percent, What is the project's NPV? b. If the required rate of retum is 16 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 8 percent, the projocf's NPV is $ (Round to the nearest cent.) Step by Step Solution
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