What is the projects internal rate of return

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Big Steves, maker 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 inflows of $21,000 per year for 9 years.

A) What are the projects NPV using a discount rate of 11%? Should the project be accepted? Why or Why not?

B) What is the project NPV using a discount rate of 14%? Should the project be accepted? Why or why not?

C) What is the projects internal rate of return? Should the project be accepted? Why or why not?

If the project discount rate is 11% then the project NPV is ?______ (Round to the nearest Dollar)

Reference no: EM13848950

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