1. Initech invests in a new plant for $150,000. The investment is expected to generate cash flows in the next 3 years of: $55,000, $75,000, and $95,000. Calculate the IRR of the project.

21.1%

15.6%

12.0%

19.5%

4.0%

1. Given the following annual returns for Stock XYZ, what does a $3,500 investment grow to over the 5-year period?

Year 1: 10%

Year 2: 15%

Year 3: 12%

Year 4: 5%

Year 5: 8%

$5,623

$840

$1,350

$1,000

$5,951