The Pan American Bottling Co. 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 $45,000. The annual cash flows have the following projections.

Year	Cash Flow
1............	$15,000
2............	20,000
3............	25,000
4............	10,000
5............	5,000

If the cost of capital is 10 percent, what is the net present value of selecting a new machine?

What is the internal rate of return?

c. Should the project be accepted? Why?