Question: Problem No. 3. The Pan American Bottling Co. is considering the purchase of a new machine the would increase the speed of bottking and save

 Problem No. 3. The Pan American Bottling Co. is considering the

Problem No. 3. The Pan American Bottling Co. is considering the purchase of a new machine the would increase the speed of bottking and save money. The net cost pf this machine is $45,000. The annual cash flows have the following projections: Year | 1 2 3 4 5 Cash Flow $ 15,000 20,000 25,000 10,000 5,000 a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine? b. What is the internal rate of return? c. Should the project be accepted? Why

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