Green Goddess Salad Oil Company 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 $ 45,000. The annual cash flows are projected as follows: Year Cash Flow 1 $ 15,000 2 $ 20,000 3 $ 25,000 4 $ 10,000 5 $ 5,000 a. If the Cost of Capital is 10%, what is the Net Present Value of this project ? b. What do we know about this projects Internal Rate of Return ?

c. What is the Payback Period for this project ? d. What is the Discounted Payback Period for this project ? e. Should this project be accepted ? Why or why not ?