None cesThe Pan American Bottling Company 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 $57,000. The annual cash flows have the following projections. Use Appendix B and AppendixD for an approximate answer but calculate your final answer using the formula and financial calculator methods.Year124Cash Flow$ 21,00024,00028,00014,0009,000a. If the cost of capital is 11 percent, what is the net present value of selecting a new machine?Note: Do not round Intermediate calculations and round your final answer to 2 decimal places.Net present valueb. What is the internal rate of return?Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.Internal rate of return%6

ConclusionThe project's Net Present Value (NPV) of $13,434.20 indicates that a positive return is…

Answered: ces The Pan American Bottling Company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...

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The Pan American Bottling Company 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 $69,000. 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 1 2 3 4 5 Cash Flow $ 29,000 29,000 29,000 34,000 20,000 a. If the cost of capital is 13 percent, what is the net present value of selecting a new machine? Note: 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? Note: 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 O No %
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Please give me answer very fast in 5 min saur
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