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 $66,000. The annual cash flows have the following projections. Use Appendix B and Appendix 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 $ 26,000 27,000 30,000 18,000 11,000 a. If the cost of capital is 7 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 places. Internal rate of return % c. Should the project be accepted? Yes No