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 new machine is $69,000. The annual cash flows have the following projections. (Use a Financial calculator to arrive at the answers.)

Year Cash Flow

1 $29,000

2 29,000

3 29,000

4 34,000

5 20,000

a. If the cost of capital is 13 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?

multiple choice

Yes

No