1. DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next 5 years in the amounts of $325,000 in year one, $325,000 in year two, $150,000 in year three, $150,000 in year four, and 50,000 in year five. DYI's required rate of return is 8%. What is the internal rate of return of this project?
A) 12.87%
B) 13.59%
C) 14.09%
D) 15.14%
2. Venture capitalists are like bankers in that they are organized as formal businesses, and are subject to the same state and federal regulations as banks, including the level of risks in their investments that they can undertake. True or False?