(Net present value calculation) Big Steve's makers of swizzle sticks is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash flows of $19,000 per year for 11 years.
a. What is the project's NPV using a discount rate of 7 percent? (Round to the nearest dollar)
b. What is the project's NPV using a discount rate of 16 percent?
c. What is the project's Internal Rate of Return?