Tasty Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The following information relates to the new machine:

Cost of the machine	$120,000
Increased contribution margin	$24,000
Increase in working capital	$5,000
Residual value	$10,000
Life of the machine	10 years
Required rate of return	4%

Requirement

1. Calculate NPV. Round to the nearest whole dollar.
2. Conclude on whether the project should be accepted based on the NPV.
3. Calculate the internal rate of return (IRR).
4. Based on the IRR will the project be accepted?
5. Calculate the project profitability index.