1. Find the IRR for the following series of cash flows: Year Cash flow 0 ($5,000) 1 $1,000 2 $2,000 3 $3,000 At 7% cost of the capital, is the project a good idea? What about 9% (explain your answer or show calculation)
2. Rick Rueta purchased a $88,000 home at 7.5% for 30 years with a down payment of $25,000. His annual real estate tax is $1,932 along with an annual insurance premium of $1,092. Rick’s bank requires that his monthly payment include an escrow deposit for the tax and insurance. What is the total payment each month for Rick? (Round your answer to the nearest cent.)