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I am having trouble figuring out how to work this question. The Pan American Bottling Co. is considering the purchase of a new machine that
I am having trouble figuring out how to work this question.
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 ofthis machine is S72,OOff The annual cash flows have the follcming projectiony Use Appendix B and Apoendix O for an approximate answer but calculate pur final answer using the formula and financial calculator methods. Cash sso.c.ca 28.000 27.oca 21.oca a. If the cost of capital is 14 percent, what is the net present value of selecting a new machine? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ue b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ntemyl rate of c. Should the project be accepted?
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