4. My Buddy wants me to invest in his company for a short period of time. He wants me to invest $16,000 now. The investment will pay me an annual dividend of $1,600. He said the cash flow will grow by 5% a year. After 10 years he is saying he will return $32,000. What is the IRR of my Investment?

5. I need to borrow Capital. I contacted Chase Manhattan Bank for a business loan. After having a nice lunch with a loan officer (and making him pay for the meal), he said the cost of funds is 400 basis points over the 10 Year T-Bill. What is the rate he is charging me AND if I pay my Investors a 7% Dividend, would you do this loan?