The Green Goddess Salad Oil 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 $58,000. The annual cash flows have the following projections. (Use a Financial calculator to arrive at the answers.)

Year	Cash flow
1	$18,000
2	20,000
3	14,000
4	25,000
5	14,000

a.	If the cost of capital is 12 percent, what is the net present value? (Round the final answer to the nearest whole dollar.)

Net present value 7,820

$

b.	What is the internal rate of return? (Round the final answer to 2 decimal places.)

Internal rate of return 17.36 INCORRECT

%

PLEASE DOUBLE CHECK YOUR ANSWERS USING A FINNACIAL CALCULATOR. NUMBERS IN PART A ARE CORRECT BUT PART B IS INCORRECT.