Question: ( Net present value calculation ) Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires
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 $ and will generate net cash inflows of $ per year for years.
a What is the project's NPV using a discount rate of percent? Should the project be accepted? Why or why not?
b What is the project's NPV using a discount rate of 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?
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