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 $57,000. The annual cash flows have the following projections. Use and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. If the cost of capital is 8 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 places. c. Should the project be accepted? Yes No Present value of an annuity of $1,PVIFA PVA=A[1(1/(1+i)n)]/i Present value of $1,PVIF PV=FV[1/(1+i)n]