The Pan American Bottling Company 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. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year	Cash Flow
1	$ 27,000
2	28,000
3	31,000
4	19,000
5	12,000

If the cost of capital is 12 percent, what is the net present value of selecting a new machine?

Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

The Pan American Bottling Company 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. Use and Appendix Q for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. If the cost of capital is 12 percent, what is the net present value of selecting a new machine? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places