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What is project NPV using discount rate of fourteen percent

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Reference no: EM132941875

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 $19,000 per year for 9 years.

Problem 1: What is the project's NPV using a discount rate of 11 percent? Should the project be accepted? Why or why not?

Problem 2: What is the project's NPV using a discount rate of 14 percent? Should the project be accepted? Why or why not?

Problem 3: What is this project's internal rate of return? Should the project be accepted? Why or why not?

Reference no: EM132941875

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