XYZ is considering the purchase of a new plastic stamping machine. This investment requires an initial cash outflow of $150,000 and will generate after-tax cash inflows of $65,000 per year in the following 4 years. For each of the listed required rates of return, determine the projects net present value.

a. The required rate of return is 3%.

b. The required rate of return is 15%.

c. Would the project be accepted under part a or b and why?