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What is the IRR and NPV

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Question - The Green Goddess 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 $72,000. The annual cash flows have the following projections. (Use a Financial calculator to arrive at the answers.)

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 NPV? (Round the final answer to the nearest whole dollar.)

b. What is the IRR? (Round the final answer to 2 decimal places.)

c. Should the project be accepted?

Reference no: EM132573485

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