What is the internal rate of return and net present value

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The Green Goddess Salad Oil Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $60,000. The annual cash flows have the following projections. (Use a Financial calculator to arrive at the answers.) Year Cash flow 1 $23,000 2 26,000 3 29,000 4 15,000 5 8,000 a. If the cost of capital is 13 percent, what is the net present value? (Round the final answer to the nearest whole dollar.) Net present value $ b. What is the internal rate of return? (Round the final answer to 2 decimal places.) Internal rate of return % c. Should the project be accepted? Yes No

Reference no: EM131943092

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