a. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.67 million and create incremental cash flows of $848,886.00 each year for the next five years. The cost of capital is 9.62%. What is the net present value of the J-Mix 2000?

b. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.86 million and create incremental cash flows of $431,304.00 each year for the next five years. The cost of capital is 10.76%. What is the internal rate of return for the J-Mix 2000?