Problem 12-18 Net present value and Internal rate of return methods [LO12-4] 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 $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 2 $20,000 25,000 3 26,000 4 30,000 5 15,000 a. If the cost of capital is 10 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.) Internal rate of return 96 c. Should the project be accepted? Yes No