The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the newmachine is $69,000. The annual cash flows have the following projections.(Use a Financial calculator to arrive at the answers.)

Year Cash Flow

1 $28,000

2 32,000

3 34,000

4 20,000

5 17,000

a.If the cost of capital is 11 percent, what is the NPV?(Round the final answer to the nearest whole dollar.)

NPV$___

b.What is the IRR?(Round the final answer to 2 decimal places.)

IRR%___

c.Should the project be accepted?

• Yes
• No