Question: QUESTION 1 Net present value: SUGAR CO, a confectioner, is looking to purchase a new jellybean-making machine at a cost of $312,500. The company management

QUESTION 1 Net present value: SUGAR CO, a confectioner, is looking to purchase a new jellybean-making machine at a cost of $312,500. The company management projects that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?
QUESTION 2 Internal rate of return: Refer to problem QUESTION 1. What is the IRR that SUGAR CO management can expect on this project?

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