Net present value calculation
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(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 inflows 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 this project's internal rate of return? (Round to two decimal places.)
7 years ago
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