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 $55,000. The annual cash flows have the following projections. UseAppendix BandAppendix Dfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

YearCash Flow1$28,000226,000326,000431,000512,000

a.If the cost of capital is 15 percent, what is the net present value of selecting a new machine?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

b.What is the internal rate of return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c.Should the project be accepted?

YesNorev: 05_04_2017_QC_CS-87933