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 $60,000. The annual cash flows have the following projections: Year-- Cash Flow 1-- $23,000 2 --$26,000 3 --$29,000 4 --$15,000 5 ---$8,000 a. If the cost of capital is 13 percent, what is the net present value of selecting the new machine? 

b. What is the internal rate of return? 

c. Should the project be accepted? Why?