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 comma 000 and will generate net cash inflows of $17 comma 000 per year for 11 years.
a. What is the project's NPV using a discount rate of 8 percent? Should the project be accepted? Why or why not?
b. What is the project's NPV using a discount rate of 17 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?
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Part 1
a. If the discount rate is 8 percent, then the project's NPV is $
enter your response here. (Round to the nearest dollar.)