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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

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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 the machine is $57000. The annual Cash flow of the following projections. Use appendix be an appendix D for the approximate answer but calculate the your final and sir using the formula in financial calculator methods. Your $122000 cash flow year to $24000 cash flow your $326000 cash flow here for $32000 cash flow your $514000 cash flow

A. If the cost of capital is 11%, what is the net present value of selecting a new machine?

Be. What is the internal rate of return?

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 $57,000. 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 $22,000 24,000 26,000 32,000 14,000 a. If the cost of capital is 11 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.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dominica

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