1. Assume you have the following cash flow in actual dollars: Year 0 -$193; Year 1 -$86; Year 2 $113; Year 3 $112; Year 4 $152. The general inflation rate is 2.6%. What is the inflation-free IRR of this cash flow? Express your answer as a percentage.
2. "A cash flow for a prospective project in actual dollars has a rate of return of 19.6%. The general inflation rate is 2.3%, and the company s MARR is 22%. What is the inflation-free rate of return? Enter your answer as a percentage between 0 and 100."