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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

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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 $54,000. The annual cash flows have the following projections. Use and for an approximate answer but calculate your final answer using the formula and financial calclator methods. a. If the cost of capital is 12 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.)

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