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 $72,000. 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	$ 35,000
2	38,000
3	35,000
4	28,000
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.

What is the internal rate of return?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Should the project be accepted?

multiple choice

Yes

No