Pan american bottling co is considering the purchase of a


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 $60,000. The annual cash flows have the following projections:

Year 1 23,000

Year 2 26,000

Year 3 29,000

Year 4 15,000

Year 5, 8000

If the cost of capital is 13 percent, what is the net present value of selecting a new machine?

What is the internal rate of return?

Should the project be accepted? Why?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Pan american bottling co is considering the purchase of a
Reference No:- TGS02249678

Expected delivery within 24 Hours