Reference no: EM13809136
Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $950000 and will generate net cash inflows of $17,000 per year for 11 years.
a. What is the project's NPV using a discount rate of 9?__________(Round to the nearest dollar)
The project should/shouldn't be accepts because the NPV is positive/negative and therefore adds/does not add value to the firm.
b. What is the project's NPV using a discount rate of 14%? ____________(Round to the nearest dollar)
The project should/shouldn't be accepts because the NPV is positive/negative and therefore adds/does not add value to the firm.
c. What is this project's internal rate of return? ___________________
If the project's required discount rate is 9% then the project should/shouldn't be accepted because the IRR is lower/higher than the required discount rate
If the project's required discount rate is 14% then the project should/shouldn't be accepted because the IRR is lower/higher than the required discount rate
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: Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $950000 and will generate net cash inflows of $17,000 per year for 11 years. What is the project's NPV..
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