Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 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 14percent? Should the project be accepted? Why or why no?

c . What is this project's internal rate of return? Should the project be accepted? Why or why not?

Answer rating: 100% (QA)

a Net present value is solved using a financial calculator The steps to solve on the financial calcu... View the full answer