Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. The investment requires an initial outlay of it's no outlay of $90000 will generate net cash inflows of 21000 per year for 8 years.
What is the project's NPV using a discount rate of 7%? Should the project be accepted? Why or why not? what is the project's NPV using a discount rate of 13%? Should the project be accepted? Why or why not? What is the project's internal rate of return? Should the project be accepted? Why are why not?
Dowling sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,500,000 and would generate annual net cash inflows of $1,200,000 per year for 7 years. Calculate the projects and PV using a discount rate of 8%.
If the discount rate is 8 percent, then the project's NPV is $?