1. QANTAS is considering a installing a new lounge at LAX. The project will have an upfront cost of $5 million today and will generate increased after-tax cash flows of $1 million annually for ten years with the cash flows occurring at the end of the year. What is the Internal Rate of Return (IRR) of this project? Enter your answer in percentage form, rounding to two decimal places (i.e. X.YY).

2. In the above question, QANTAS executives are not comfortable with the Internal Rate of Return as a metric and prefer the Modified Internal Rate of Return. If the Cost of Capital used by QANTAS is 10%, what is the Modified Internal Rate of Return of the lounge project?

Enter your answer in percentage form, rounding to two decimal places (i.e. X.YY).