Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $950000 and will generate net cash inflows of $17,000 per year for 11 years.

a. What is the project's NPV using a discount rate of 9?__________(Round to the nearest dollar)

The project should/shouldn't be accepts because the NPV is positive/negative and therefore adds/does not add value to the firm.

b. What is the project's NPV using a discount rate of 14%? ____________(Round to the nearest dollar)

The project should/shouldn't be accepts because the NPV is positive/negative and therefore adds/does not add value to the firm.

c. What is this project's internal rate of return? ___________________

If the project's required discount rate is 9% then the project should/shouldn't be accepted because the IRR is lower/higher than the required discount rate

If the project's required discount rate is 14% then the project should/shouldn't be accepted because the IRR is lower/higher than the required discount rate