Purchase of a new plastic stamping machine

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Reference no: EM13723768

FIN370 Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $17,000 per year for 9 years.

What is the project's NPV using a discount rate of 8 percent? Should the project be accepted?

What is the project’s NPV using a discount rate of 13 percent? Should the project be accepted?

What is the project's internal rate of return? Should the project be accepted?

Reference no: EM13723768

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