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

	a) shift down and have a steeper slope
	b) shift up and have a steeper slope
	c) shift up but have less slope
	d) shift down and have the same slope

What is the modified internal 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%
	14.37%