1. A company is considering entering into a joint venture that will require an investment of $10 million. The project is expected to generate cash flows of $4 million, $3 million, and $4 million in each of the next three years, respectively. Assuming a discount rate of 10 percent, what is the project's approximate IRR?

a. 10%.

b. 20%.

c. 0.5%.

d. 15%

2. A price-weighted index consists of 3 stocks and stands at 6,000 at the beginning of the month. The prices, market capitalization, and free float of the stocks are as follows. Stock A: price 500, market cap. 2.5 trillion, and free float 20%. Stock B: price 300, market cap. 1.5 trillion, and free float 60%. Stock C: price 200, market cap. 4 trillion, and free float 15%. If by the end of the month, only stock B rises to 330, what will be the index?

a. 6,300

b. 6,600

c. 6,180

d. 6,200