1. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.55 million and create incremental cash flows of $825,757.00 each year for the next five years. The cost of capital is 11.71%. What is the net present value of the J-Mix 2000?

2. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.57 million and create incremental cash flows of $490,104.00 each year for the next five years. The cost of capital is 9.87%. What is the internal rate of return for the J-Mix 2000?