Big Steve\'s, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an intial outlay of $95,000 and will generate net cash inflows of $19,000 per year for 11 years.
a. What is the project\'s NPV using a discount rate of 7%? Should the project be accepted? Why or why not?
b. What is the project\'s NPV using a discount rate of 13%? 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?
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