1. An investment has the following cash flows. The required rate of return for this investment is 14%. Should you make your decision based solely on the internal rate of return rule? Why or why not?

Year	Cash Flow
0	-$60
1	$155
2	-$100

Question 1 options:

	You cannot apply the IRR rule in this case because there are multiple IRRs.
	Yes; because the IRR is a positive rate of return
	No; because the IRR is less than the required return
	Yes; because the IRR exceeds the required return
	No; because the IRR is a negative rate of return

2. Book, Inc. is considering a project that is expected to produce the following cash flows over the next five years: $22,500, $28,200, $41,800, $33,000, and $15,000 respectively. Book, Inc. has $98,000 available, which is the amount needed to initiate the project. Should Book, Inc. accept this project if the required rate of return is 11%? Why or why not?

Question 2 options:

	Yes; Book, Inc. will make $6,362 in today's dollars if they accept the project.
	No; The PI is 1.04, which is considered a reject signal.
	No; The IRR is 12.47%, which is greater than the required return.
	Yes; The PI is 0.96, which is considered an acceptance signal.
	No; Book, Inc. would lose $2,407 in today's dollars if they accept the project.