Problem 12-18 (Algo) Net present value and internal rate of return methods [LO12-4] The Pan American Bottling Company is considering the purchase of a new machine that would increase the sp money. The net cost of this machine is $60,000. The annual cash flows have the following projections. Use App D for an approximate answer but calculate your final answer using the formula and financial calculator methods Year 1 2 3 4 5 Cash Flow $ 27,000 28,000 31,000 19,000 12,000 a. If the cost of capital is 12 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Net present value b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal place: Internal rate of return %

Problem 12-18 (Algo) Net present value and internal rate of return methods [LO12-4] The Pan American Bottling Company is considering the purchase of a new machine that would increase the sp money. The net cost of this machine is $60,000. The annual cash flows have the following projections. Use AR D for an approximate answer but calculate your final answer using the formula and financial calculator methods a. If the cost of capital is 12 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal place Problem 12-18 (Algo) Net present value and internal rate of return methods [LO12-4] The Pan American Bottling 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 $60,000. The annual cash flows have the following projections. Use Appendix B and AR Rendilis D for an approximate answer but calculate your final answer using the formula and financlat calculator methods. 0. If the cost of capital is 12 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate colculations and round your final answer to 2 decimal ploces. b. What is the internal rate of return? Note: Do not round intermediate colculations. Enter your answer as o percent rounded to 2 decimal places