1) A project has the following cash flows. What is the internal rate of return?

Year	Cash Flow
0	$	24,750
1		9,875
2		10,250
3		12,655

2) You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $53,500 and will produce cash inflows of $20,000 for three years. Should you accept this project based on its internal rate of return? Why or why not?