1. If a project has an initial quality of $40,000 and cash flows of $12,000 per year for the next 5 years, what is the IRR of this project? (Assume to the nearest tenth of a percent, e.g 12.3)
2. Suppose a company has proposed a new 5-year project. The project has an initial outlay of $120,000 and has expected cash flows of $32,000 in year 1, $50,000 in year 2, $56,000 in year 3, $69,000 in year 4, and $70,000 in year 5. The required rate of return is 14% for projects at this company what is the probability index for this project? (Answer to the nearest hundredth, e.g 1.23)