What is the projects npv using a discount rate of 12 percent

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Case: Big Steve's Swizzle Sticks is considering the purchase of a new plastic-stamping machine. This investment will require an initial outlay of $100,000 and will generate net cash inflows of $18,000 per year for 10 years.

Question 1: What is the project's NPV using a discount rate of 12 percent? Should the project be accepted? Why or why not?

Question 2: What is the project's NPV using a discount rate of 13 percent? Should the project be accepted? Why or why not?

Question 3: What is this project's IRR? Should the project be accepted? Why or why not?

Reference no: EM133327696

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