BUS3420L Week 5 Problems i Saved 10 Problem 12-18 Net present value and internal rate of return methods [LO12-4) 10 points 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 $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. eBook Year 1 2 3 4 5 Cash Flow $35,000 38,000 35,000 28,000 12,000 Hint 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.) Print Net present value References b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return % c. Should the project be accepted? O Yes NO Next