BBA 3310 Unit VII AssignmentInstructions: Enter all answers directly in this worksheet. When finished select Save As, and save thisdocument using your last name and student ID as the file name. Upload the data sheet to Blackboard asa .doc, .docx or .rtf file when you are finished.Question 1: (10 points). (Net present value calculation) Dowling Sportswear is considering building a newfactory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000and would generate annual net cash inflows of $900,000 per year for 7 years. Calculate the project's NPVusing a discount rate of 5 percent. (Round to the nearest dollar.)a. If the discount rate is 5 percent, then the project's NPV is:$Question 2: (30 points). (Net present value calculation) Big Steve's, makers of swizzle sticks, isconsidering the purchase of a new plastic stamping machine. This investment requires an initial outlay of$90,000 and will generate net cash inflows of $19,000 per year for 11 years. To answer Choose an itemquestions, click on the orange text and use the pull down menu to select the best answer.a. What is the project's NPV using a discount rate of 7 percent? (Round to the nearest dollar.)If the discount rate is 7 percent, then the project's NPV is:$Should the project be accepted?The projectthereforeaccepted because the NPV isChoose an item.Choose an item.Choose an item.andChoose an item.andvalue to the firm.b. What is the project's NPV using a discount rate of 16 percent?If the discount rate is 16 percent, then the project's NPV is:$Should the project be accepted?The projectthereforeChoose an item.Choose an item.accepted because the NPV isvalue to the firm.If the project's required discount rate is 16%, then the projectaccepted because the IRR isChoose an item.Choose an item.