Question:

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1)Ernie Manufacturing has projected sales of $220 million next year. Costs are expected to be $120 million and net investment is expected to be $55 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price?

2)

Given the following cash flows calculate the IRR:

Year 0	1	2	3
-4500	1100	1800	1200

* Can you show me the work please. The first tutor that attempted to help me did not provide the workand the answer was wrong. Maybe if I seen the work I would have been able to recognize what is wrong. I need assistance on both questions. Thanks in advance :)