Big steve's makers of swizzle tickets is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 nd will generate net cash inflows of $16,000 per year for 8 years.
a) What is the projected NPV using a discount rate of 9%? Should their project be accepted? Why or why not?
b) What is the projected NPV using a discount rate of 14%? Should their project be accepted? Why or why not?
c) What is the projects internal rate of return? Should their project be accepted? Why or why not?