Big​ Steve's, makers of swizzle​ sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of ​$110,000 and will generate net cash inflows of ​$21,000 per year for 9 years.
a. What is the​ project's NPV using a discount rate of 7 percent​? Should the project be​ accepted? Why or why​ not?
b. What is the​ project's NPV using a discount rate of 17 ​percent? Should the project be​ accepted? Why or why​ not?
c. What is this​ project's internal rate of​ return? Should the project be​ accepted? Why or why​ not?