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Business, 17.08.2021 03:30 jesse8581

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. Year Cash Flow
1 $29,000
2 33,000
3 35,000
4 21,000
5 18,000
a. If the cost of capital is 12 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return? (Do not round intermediate calculations.
c. Should the project be accepted?

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