The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing

$325,000.

The Sisyphean Company expects cash inflows from this project as

detailed below:

Year 1	Year 2	Year 3	Year 4
$147,522	$147,522	$147,522	$147,522

The appropriate discount rate for this project is

18%.

The internal rate of return (IRR) for this project is closest to:

Question content area bottom

Part 1

A.

29%

B.

22%

C.

33%

D.

17%

2-

A portfolio has three stocks

140

shares of Yahoo (YHOO),

210

shares of General Motors (GM), and

90

shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $20, the price of GM is $20, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM.

Question content area bottom

Part 1

A.

10.5%,

21.3%

B.

14.2%,

20.2%

C.

11.2%,

11.2%

D.

15%,

22.5%