(Net present value calculation) Big Steve's, makers of swiedle sticks, is considering the purchase of...
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(Net present value calculation) Big Steve's, makers of swiedle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outtay of $110,000 and will generate net cash inflows of $20,000 per year for 8 years a. What is the projec's NPV using a discount rate of 11 percent? Should the peoject be accepted? Why or why not? b. What is the project' NPV using a discount rate of 13 percent? Should the projoct be accepted? Why or why not? c. What is this projects internal rate of retum? Should the project be accepted? Why or why not? a. If the discount rate is 11 percent, then the project's NPV is $ (Round to the nearest dollar)
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