A. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.81 million and create incremental cash flows of $447,449.00 each year for the next five years. The cost of capital is 11.52%. What is the internal rate of return for the J-Mix 2000?

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

B. The risk-free rate is 1.31% and the market risk premium is 9.59%. A stock with a of 0.95 just paid a dividend of $1.65. The dividend is expected to grow at 21.22% for three years and then grow at 3.66% forever. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places