Industrial Industries is considering opening a new 5 year project. The project will require investments in property, plant, and equipment totalling $8.5 million and an initial investment in net working capital of $1 million. The operating cash flows are expected to be $1 million the first year and are expected to increase by $1 million in each of the four remaining years. At the end of the project, they will recover the net working capital, and they expect to sell their equipment, producing an after tax cash flow of $2 million. Based on the riskiness of the project, they require a return of 18%. What is the IRR of this project?

Question 11 options:

	19.32%
	18.58%
	18.95%
	17.84%
	19.51%

Amalgamted Industries' bonds mature 25 years from today and have par value of $1,000. The bonds have a YTM of 11.65% and a coupon rate of 11.85%. Assuming the bonds pay interest annually, how much should these bonds sell for?

Question 16 options:

	$1,117.68
	$955.11
	$1,087.20
	$985.59
	$1,016.08