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 ?$16,000 per year for 9 years.
a. What is the? project's NPV using a discount rate of 7 percent?? Should the project be? accepted? Why or why? not?
b. What is the? project's NPV using a discount rate of 16 ?percent? Should the project be? accepted? Why or why? not?
c. What is this? project's internal rate of? return? Should the project be? accepted? Why or why? not?