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America Cola is considering the purchase of a special-purpose bottling machine for $65,000. It is expected to have a useful life of 4 years with

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America Cola is considering the purchase of a special-purpose bottling machine for $65,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs EEB (Click the America Cola uses a required rate of return of 18% in its capital budgeting decisions, Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. the icon to view the savings in cash operating costs.) (Click the icon to view the Future Value of Annuity of $1 factors.) (Click the icon to view the Present Value of Annuity of $1 factors.) (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Present Value of $1 factors.) Read the requirements 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is S 2. Payback period. (Round your answer to two decimal places.) The payback perlod is years. 3. Internal rate of retun (using the interpolation method). (Use a trial-and-error approach and straight-line interpolation as necessary. Round your answer to the nearest hundredth of a percent, XXx%.) The intemal rate of return (IRR) is Data Table Year Amount S 25,000 22,000 21,000 20,000 S 88,000 Total

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