Big stevies is the maker of swizzle sticks

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Reference no: EM13726354

Big Stevie's is the maker of swizzle sticks; they are considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of $21,000 a year for 9 years.

A. What is the project NPV using a discount rate of 9%? Should project be accepted? Why or why not.

B. What are the projects NPV using a discount rate of 14%? Should project be accepted? Why or why not.

C. What is this projects internal rate of return? Should it be accepted? Why or why not.

Reference no: EM13726354

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