1-The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $75,000. The annual cash flows have the following projections. UseAppendix BandAppendix Dfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

Appendix D Present value of an annuity of $1, PV FA Percent 2% 5% 6% 7% 8% 9% 10% 11% 12% 0.926 0.909 0.901 1.942 1.886 1.690 2.829 2.723 2.577 2.531 2.444 2.402 3.902 3.717 3.387 3.312 3.240 3.102 3.037 4.713 4.329 3.993 5.601 5.417 5.076 4.917 4.76 4.48 4.355 4.23 4.111 6.230 5.033 4.712 6.733 6.463 5.971 5.535 4.968 7.108 6.247 5.995 5.537 5.328 7.360 6.418 5.650 7.139 11.255 10.575 8.863 8.384 7.161 6.814 6.492 12.134 11.348 10.635 9.394 8.853 7.904 7.487 7.103 6.750 6.424 13.004 12.106 11.296 10.563 9.899 8.244 6.982 6.628 11.938 10.380 9.712 3.559 14.718 13.578 12.561 10.838 10.106 8.851 6.974 7.120 13.754 12.659 10.828 10.059 9.372 8.756 7.250 17.226 15.678 14.324 13.134 12.085 11.158 9.604 8.950 7.36 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 7.963 7.469 17.413 10.675 30 22.396 19.600 17.292 12.409 11.258 9.427 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 Percent 14% 15% 16% 17% 18% 19% 20% 25% 30% 35% 0.862 0.855 0.667 1.668 1.626 1.605 1.56 1.547 1.528 1.361 1.289 2.246 2.174 2.140 2.106 1.952 1.816 1.589 1.605 2.974 2.798 2.166 1.849 3.517 3.433 3.127 3.058 2.991 2.689 2.436 2.035 1.737 3.498 2.951 2.643 2.385 1.824 3.706 4.487 4.207 4.078 3.954 3.837 3.329 2.925 2.598 1.922 5.132 4.45 4.303 4.163 4.031 3.463 3.019 2.665 2.379 1.948 4.494 3.571 3.092 1.965 5.426 5.216 4.833 5.687 5.453 4.327 3.656 5.42 4.611 3.190 2.779 2.456 1.985 5.842 5.583 4.910 4.533 3.780 3.223 2.799 1.990 6.462 5.324 4.876 4.675 3.859 3.268 1.995 5.668 5.405 5.162 4.938 4.730 3.887 1.997 5.749 4.988 4.775 6.840 6.467 5.534 4.812 3.928 3.304 2.844 2.494 1.999 6.938 5.584 5.070 3.942 3.311 2.848 7.025 5.929 5.628 5.101 1.999 25 4.948 3.985 3.329 30 6.177 5.829 5.517 5.235 4.979 3.995 2.857 7.634 6.233 5.871 5.548 5.258 4.997 3.333 2.000 6.661 6.246 5.880 4.999 4.000 2.857 2.500 Year 1 Year 2 Year 3 Year 4 Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash ow