You have been asked to evaluate an investment opportunity that is expected to produce cash flow of $$15\mathrm{.}00$ every year for the next $16$ years, with the first payment expected one year from today.

a$)$ If it costs $$108$ to purchase this investment today, what rate of return should we expect it to produce?

b$)$ Our client needs to earn a minimum rate of return of at least $5\%$ in order to consider this investment and has asked us to advise them. Does it appear to meet their requirements?

a$)$ Expected rate of return on investment based on $$108$ price: $($Round to two decimal places.$)$

b$)$ Our client needs to earn a minimum rate of return of at least $5\%$ in order to consider this investment... does it appear to meet their needs? $($Choose the best answer from the list below.$)$

$1.$ Yes $-$ the expected rate of return on this investment is lower than our client requires

$2.$ No $-$ the expected rate of return on this investment is lower than our client requires

$3.$ No $-$ the expected rate of return on this investment is higher than our client requires

$4.$ Yes $-$ the expected rate of return on this investment is higher than our client requires