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 $$51,000.$ 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

$1$ $ $20,000$

$223,000$

$327,000$

$413,000$

$58,000$

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