Big Steve’s, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 and will generate net cash inflows of $17,000 per year for 9 years. A. What is the project’s NPV using a discount rate of 9 percent? Should the project accepted? Why or why not? B. What is the project’s NPV using a discount rate of 16 percent? Should the project be accepted? Why or why not ? C. What is the project’s internal rate of return? Should the project be accepted? Why or why not? If the discount rate is 9 percent, then the NPV is Round to the nearest dollar

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.