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 $75,000. 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.

Year Cash Flow

1) 30,000

2) 35,000

3) 38,000

4) 25,000

5) 19,000

If the cost of capital is 11 percent, what is the net present value of selecting a new machine?

What is the internal rate of return?