Business
Business, 30.06.2020 18:01, frankcaroccio0203

Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $100,000 and will generate net cash inflows of $18,000 per year for 10 years. A) What is the projects NPV using a discount rate of 10%? Should the project be accepted? Why or Why not?
B) What is the projects NPV using a discount rate of 15%? Should the project be accepted? Why or why not?
C) What is the projects internal rate of return? Should the project be accepted? Why or why not?
If the project discount rate is 11% then the project NPV is ? (Round to the nearest Dollar)

answer
Answers: 3

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