What will happen to the SML if: (1) inflation expectations increase, and (2) investors become more risk averse?

Since it can only go up and down will it: will it a) shift down and have a steeper slope or b) shift up and have a steeper slope; or will it c) shift up but have less slope or will it d) shift down and have the same slope; my guess would be "b" it'll shift up and have a steeper slope.

What is themodifiedinternal rate of return for a project that has a net investment of $76,000 and net cash flows of $20,507 per year for 7 years? Assume that the cost of capital is 10: a) 19%; b) 18.2%; c) 17.92%; d) 16.85% or e)14.37% I'm thinking 'e' but I'm not quite sure?