You are considering an investment for which you require a 12 percent rate of return. The investment will cost $55,000 and produce cash inflows of $10,000 a year for 9 years. Should you accept this project based on its internal rate of return? Why or why not?

		yes; because the IRR is 11.17 percent
		no; because the IRR is 12.17 percent
		yes; because the IRR is 12.17 percent
		no; because the IRR is 11.17 percent

Coffee Co. just announced that it will commence paying annual dividends. It plans to pay $1.75 a year for four years, $1.25 a year for the following three years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 7 percent rate of return?

		$7.67
		$6.32
		$5.15
		$8.43